Abu Dhabi Global Market Propose New DLT Framework

The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has proposed a new legislative framework for Distributed Ledger Technology (DLT). The proposed framework is set to be known as the Distributed Ledger Technology Foundations Regulations 2023. In a consultation paper released by the RA, stakeholders, and members of the public have been invited to give their feedback on the proposed legislative framework.

The RA’s proposals cover various aspects of DLT token issuance, including their structure, governance and control, tokens, reporting, disclosures and publication, beneficial ownership, supervision, and insolvency and liquidation/voluntary strike-off. The proposed framework showcases ADGM RA’s recognition of the overall suitability of foundation structures for DLT projects and its alignment with ADGM’s strategy to facilitate and support crypto initiatives.

DLT projects have continued to gain traction in recent years, and the proposed framework is expected to provide an environment that supports the growth of DLT in Abu Dhabi. ADGM note that the consultation paper is aimed at DLT or blockchain industry participants, associations, stakeholders, and legal advisors who operate or plan DLT projects or engage in digital asset-related activities.

In a statement, the ADGM RA emphasized the importance of the proposed framework, saying, “The proposed legislative framework will provide a comprehensive and robust regulatory environment that will enhance the quality and standard of DLT Foundations in ADGM. We welcome feedback from stakeholders and members of the public on the proposals set out in the consultation paper.”

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The consultation period for the proposed legislative framework will close on 12th May 2023, giving stakeholders and members of the public ample time to review the proposal and provide feedback. The proposed framework is expected to provide clarity and guidance for DLT Foundations in Abu Dhabi and support the growth of the blockchain and DLT industry in the region.

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