Abu Dhabi Global Market Unveils New Regulations for Web3 Firms
Abu Dhabi seeks to beef up its web3 landscape with new guidelines for blockchain-based firms as its crypto hub is projected to grow in the coming months.
The Abu Dhabi Global Market (ADGM) announced new rules that create numerous blockchain foundations and how they operate within the jurisdiction including setting up of decentralized autonomous organizations (DAOs) and web3 groups.
The rules will create a smooth system of ushering blockchain foundations in its international free trade zone to attract investment capital and boost the competitiveness and efficiency of its local markets.
Distributed ledger technology (DLT) foundations like others in traditional systems provide technical and financial support for startups and smaller firms including offering key infrastructure in the region without direct involvement.
Ahmed Jasim Al Zaabi, the Chairman of ADGM explained that the latest development is part of its ongoing web3 strategy to create efficiency.
“By transforming the blockchain and Web3 landscape, we are moving towards a future characterized by setting global benchmarks with enhanced transparency and efficiency.”
The rules require blockchain foundations to fulfill several conditions from registration, membership, and disclosures.
To set up a DLT foundation, founders must file a signed Charter to the Registrar and state that all corresponding laws and financial requirements have been fulfilled.
Foundations are also to present a copy of the White Paper, tokenomics, and DLT if it has been initially developed or filed subsequently.
The license of a foundation differs from a Financial Service Permission making the former unable to act in other capacities not expressly given. Any contravention of this distinction would lead
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