Abu Dhabi regulator to draw crypto regulations, reminds of risks

Abu Dhabi regulator to draw crypto regulations, reminds of risks

abudhabi

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market  is reviewing and considering a robust and risk-appropriate regulatory and oversight regime for cryptocurrency exchanges and intermediaries, the regulator said in a publication on its site.

The FSRA is planning to consult the industry and relevant professional bodies in the process.

Further in the publication, the FSRA warned investors, that meanwhile they should be aware of the risks of initial coin offerings and trading in cryptocurrencies – instruments that are not currently regulated.

“The FSRA notes that virtual currencies, although not legal tender, are gaining interests globally as a medium of exchange for goods and services.  However, there are risks and concerns”, the FSRA said. “Given the anonymous and cross-border nature of virtual currency transactions, they are particularly vulnerable to money laundering and terrorist financing risks, as well as other financial crimes.  Incidents of cyberattacks and cybercrime are also on the rise.”

It appears that the FSRA is taking a more liberal approach towards cryptocurrencies, unlike neighboring Qatar, whose regulator warned trading in cryptocurrencies is forbidden.

Earlier this month the regulator of another of the UAE financial regulators – the Securities and Commodities Authority (SCA)  has warned of the risks of ICOs and noted they are unregulated instruments.

The FSRA is overseeing the activities in the Abu Dhabi Global Market – an international financial center (IFC) located in the capital city of the United Arab Emirates and is established by UAE Federal Decree as a broad-based financial center.

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