The Abu Dhabi Global Market (ADGM) Registration Authority has launched comprehensive regulations governing Web3 organizations. This notably, marks a significant milestone in the global regulatory landscape. The ADGM, already a bustling hub of crypto activity, aims to set a new standard with its purpose-built regulatory framework.
Revolutionizing Web3 Entities and Creating a DLT Foundation
The Distributed Ledger Technology (DLT) Foundations Regulations pave the way for the operation of blockchain foundations, Web3 entities, decentralized autonomous organizations (DAOs), and traditional foundations venturing into DLT. These regulations provide a structured approach, ensuring seamless integration and operation within the evolving blockchain landscape.
Prospective entities can establish a “DLT Foundation” by submitting a signed charter. This will encompass crucial details such as the foundation’s initial assets, governance structure, and token issuance plans. To facilitate transparency, organizations must provide a white paper, tokenomics paper, and a link to a DLT Framework document.
This comprehensive approach streamlines the foundation creation process, fostering clarity and compliance.
Navigating Key Requirements, Financial Implications and Regulatory Timeline
Entities seeking DLT Foundation status must adhere to specific requirements, including the disclosure of key figures without publicizing their names. The foundation’s name must conclude with “DLT Foundation.” Further, a council of two to 16 members is mandatory for effective managerial and administrative functions.
Importantly, activities licensable by the ADGM Financial Services Regulatory Authority are off-limits, ensuring a secure and regulated environment.
Dated October 2nd, the regulations were officially unveiled on November 2nd, underlining the ADGM’s commitment to transparency. Initial registration application fees amount to $1,470, providing a cost-effective entry point for entities looking to establish a presence within the ADGM’s regulatory framework.
ADGM’s Vision for the Future
Incorporating English law within its jurisdiction, the ADGM has consistently evolved since its establishment in 2015. Having introduced cryptocurrency regulations in 2018, the recent DLT Foundations Regulations mark another milestone in ADGM’s strategic journey to elevate its standing in the blockchain and digital assets sphere.
Ahmed Jasim Al Zaabi, ADGM Chairman, expressed the significance of this move, stating,
“By transforming the blockchain and Web3 landscape, we are moving towards a future characterized by setting global benchmarks with enhanced transparency and efficiency.”
Catalyzing Web3 Growth: Hub71+ Digital Assets Initiative
In a collaborative effort, ADGM resident Hub71 unveiled the Hub71+ Digital Assets project in February, injecting $2 billion to stimulate Web3 growth. Partnerships with entities like First Abu Dhabi Bank underscore the collaborative spirit within ADGM, positioning Abu Dhabi as a prominent hub for crypto service providers and foundations.
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