A Regulatory Milestone
The Abu Dhabi Global Market (ADGM) has propelled itself to the forefront of blockchain regulation by unveiling a comprehensive regulatory framework aimed at governing Web3 organizations. Marked as a “purpose-built” initiative, the Distributed Ledger Technology (DLT) Foundations Regulations encompass the operation of blockchain foundations, Web3 entities, decentralized autonomous organizations (DAOs), and traditional foundations venturing into DLT. This move accentuates ADGM’s continuous endeavor to consolidate its position in the blockchain and digital asset arena.
Detailed Framework Unveiled
The regulations facilitate the establishment of a “DLT Foundation” through the submission of a signed charter. This charter should articulate the initial assets of the foundation, its governance structure, and details on token issuance, if applicable. The submission should also include the organization’s white paper, tokenomics paper, and a technical document termed a DLT Framework.
Governance and Transparency
A pivotal requirement is the disclosure of key figures within the foundation, although these names will remain confidential. The foundation must bear a name ending with “DLT Foundation” and maintain a council comprising two to 16 members for managerial and administrative oversight. However, the foundation will not be permitted to engage in activities licensable by the ADGM Financial Services Regulatory Authority, with its token holders acknowledged as beneficiaries.
A Leap Towards Web3 Growth
Dated October 2 and publicized on November 2, the regulations reflect ADGM’s strategic ambition to elevate its profile in the blockchain domain. The establishment of a structured regulatory environment is envisaged to foster transparency and efficiency, setting global benchmarks in the blockchain and Web3 landscape. ADGM’s move is synergistic with previous initiatives like the $2 billion Hub71+ Digital Assets project, which underscores the region’s commitment to fostering Web3 growth.
Embracing the Digital Future
ADGM’s Chairman, Ahmed Jasim Al Zaabi, expressed that the new regulations signify a transformative step towards a future enriched with enhanced transparency and efficiency. With a burgeoning network of crypto service providers and foundations, Abu Dhabi and the ADGM are unequivocally positioning themselves as pivotal hubs in the global blockchain ecosystem.