Abu Dhabi has launched an innovative regulatory framework for Distributed Ledger Technology (DLT), establishing a standard for blockchain and DAO operations that could be a model worldwide.
The Abu Dhabi Global Market (ADGM) has introduced the 2023 DLT Foundations Regulations, setting a groundbreaking legal framework for the governance of blockchain technologies and Decentralized Autonomous Organizations (DAOs). The ADGM’s Registration Authority has declared that these rules will strengthen the blockchain and Web3 industries, positioning both the region and ADGM as leaders in the field of digital asset regulations.
Designed to tackle the unique challenges of the blockchain environment, the DLT Foundations Regulations facilitate the functioning and token issuance by DAOs and blockchain foundations. With these measures, the UAE has become the first in the world to implement such an advanced regulatory standard, setting a precedent for others to follow. The regulations are seen as crucial by ADGM, as Abu Dhabi is quickly emerging as a hub for digital asset innovation. This new regulatory regime aims to spur significant advancements in the realm of digital assets, promoting a vision of a transparent and effective industry future. In addition, ADGM has published a comprehensive 76-page document detailing the DLT Foundations Regulations, which encompasses the requirements for business registration, responsibilities, necessary documentation, and audit procedures.
Through the establishment of this regulatory landscape, ADGM reinforces the UAE’s pioneering role in the global digital economy, charting the course for an ecosystem of digital assets that is transparent, efficient, and secure.