Foundation

<p>The Abu Dhabi Global Market (<a href="https://www.cryptopolitan.com/abu-dhabi-market-considers-decentralized-legal-framework/">ADGM</a>) Registration Authority has recently unveiled a pioneering set of regulations aimed at governing Web3 organizations within the international financial free zone. These regulations, referred to as the “Distributed Ledger Technology (DLT) Foundations Regulations,” are being touted as a purpose-built framework and a first of its kind in the evolving landscape of blockchain and decentralized technologies.</p> 
<h2 class="wp-block-heading" id="inception-of-dlt-foundations-regulations">Inception of DLT foundations regulations</h2> 
<p>The DLT Foundations Regulations are poised to provide a comprehensive framework for the operation of various entities in the Web3 space, including blockchain foundations, decentralized autonomous organizations (DAOs), and traditional foundations seeking to expand their operations into the realm of distributed ledger technology. A key distinction lies in the fact that blockchain foundations extend financial and other forms of support to blockchain networks without directly participating in their operation.</p> 
<p>Under these<a href="https://www.wam.ae/en/details/1395303216679" rel="nofollow noopener" target="_blank"> regulations</a>, organizations can establish a “DLT Foundation” by submitting a duly signed charter. This charter must contain essential information, including a description of the foundation’s initial assets, details concerning governance, and potential token issuance. Additionally, organizations are required to provide their white paper, tokenomics paper, and a reference to a technical document known as a DLT Framework.</p> 
<p>To enhance transparency, a DLT Foundation must disclose the names of its key figures, although this information will not be made public. The regulations also mandate that the foundation’s name should end with “DLT Foundation.” For effective management and administration, a council comprising between two and 16 members is necessary.&nbsp;</p> 
<p>However, it’s worth noting that a DLT Foundation is not permitted to engage in activities that require licensing by the ADGM Financial Services Regulatory Authority. Furthermore, the token holders associated with the foundation will be treated as beneficiaries.</p> 
<h2 class="wp-block-heading" id="key-dates-and-fees">Key dates and fees</h2> 
<p>These groundbreaking regulations were officially dated as of October 2nd and were made publicly available on November 2nd. Organizations interested in registering under these regulations will be required to pay an initial application fee totaling $50,000.</p> 
<h2 class="wp-block-heading" id="adgm-s-strategic-vision">ADGM’s strategic vision</h2> 
<p>The Abu Dhabi Global Market, established in 2015, operates under English law and has been progressively advancing its regulatory framework for digital assets and blockchain technologies. The introduction of these regulations signifies ADGM’s ongoing strategy to solidify its position in the blockchain and digital asset sector.</p> 
<p>Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized the strategic importance of these regulations, stating, “By transforming the blockchain and Web3 landscape, we are moving towards a future characterized by setting global benchmarks with enhanced transparency and efficiency.”</p> 
<p>In alignment with ADGM’s commitment to fostering Web3 growth, Hub71, a resident of ADGM, announced the Hub71+ Digital Assets project earlier this year, backed by a substantial $2 billion investment. The initiative aims to encourage the development of Web3 technologies within the ADGM ecosystem, with the involvement of financial institutions like First Abu Dhabi Bank.</p> 
<p>Abu Dhabi and ADGM have become home to a growing number of cryptocurrency service providers and foundations. With these new regulations, the ADGM solidifies its position as a global hub for blockchain and digital asset innovation.</p>

Abu Dhabi Global Market(ADGM) Introduces Groundbreaking Regulations for Web3 Organizations

Table of Contents

Cryptopolitan_News

Other articles published on Nov 2, 2023

Turkey Takes Aim at Crypto Regulation to Escape FATF Grey List

Bolt Kenya appeals judgment that could have seen its licence revoked by Nov 3

With Nine Chronicles M Planetarium Labs Brings Performant Blockchain Gaming to the Masses

Elon Musk Criticizes NFTs but Supports Bitcoin Ordinals

DIFC Champions Dubai as a Global Crypto Hub with Approval of XRP Under its Virtual Assets Regime

Cardano November Momentum – An Over 40% Increase In The Cards?

Join our free newsletter for daily crypto updates!