The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has launched a “crypto asset regulatory framework,” as announced in a statement on Monday, June 25. It will apply to the country’s international financial center and free zone. The framework comes a month after a robust public consultation on the regulations with both local and global respondents, making “several refinements” to the policy before release.

The FSRA has addressed several key issues concerning safe custody, consumer protection, technology governance, market abuse, disclosure/transparency and the regulations applicable to cryptocurrency exchanges in the region. Per the regulator, the new approach will be similar to that adopted for global securities exchanges.

The FSRA has defined cryptocurrencies as commodities instead of securities. Utility tokens are considered commodities too, while security tokens will be subject to relevant regulatory policies. All other off-shoot funds and derivatives are classified as “specified investments” under the Financial Services and Markets Regulations.

Richard Teng, the chief regulatory officer of ADGM’s FSRA, said:

“We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework.”

He added:

“Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence…Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalized.”

New operators looking to work as crypto exchanges will be required to deposit an initial authorization fee of $125,000. An annual fee of $60,000 is also to be paid. Custodian firms like crypto wallets have to pay $15,000 annually, and their initial fee is $20,000.

The regulator also added a levy based on daily trading on a sliding scale basis after the public consultation. Exchanges with an average daily transaction volume of less than $10 million will be levied a 0.0015% fee, up to $15,000 each month. Larger exchanges with an average daily value of over $250 million will pay 0.0006% or a minimum of $150,000 per month. Two other slabs for medium-sized exchanges demand 0.0012% for exchanges with an average value of up to $50 million and 0.0009% for exchanges with a daily value up to $250 million.

Abu Dhabi Regulator Introduces Regulations for Its Financial Center and Free Zone was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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