Recently, it has been reported that the Registration Authority of Abu Dhabi Global Market (ADGM) is actively seeking answers regarding the proposed legislative framework for distributed ledger technology (DLT). Specifically, the authority is targeting disclosures, liquidation, an...
The proposed legal framework has generated interest among stakeholders, as ADGM has received inquiries regarding the use of ADGM foundations for DLT purposes and the issuance of non-regulated utility tokens.
However, even though foundations are naturally well-suited for DLT projects, certain features and requirements within ADGM’s current foundations’ regimes impose constraints that are deemed undesirable for DLT projects.
This recently proposed legal framework aims to set up features that may be attractive to investors working within the cryptocurrency niche and Web3. Abu Dhabi is doing this to facilitate the adoption of blockchain technology, as it also aims to become a cryptocurrency hub in the near future.
The publication states that everyone running or developing DLT initiatives, anyone involved in digital asset-related activities and their legal advisers, and anyone involved in the DLT sector, including participants, organizations, and stakeholders, would find this Consultation Paper useful.