REGULATION
Crypto Market Abuse Regulations in
Abu Dhabi Global Market
By
FSRA
(
Financial Services Regulatory Authority
)
Abu Dhabi Global Market (ADGM), the finance-focused free zone of the emirate of Abu Dhabi, has regulated crypto-asset spot activities since June 2018. The free zone has a comprehensive regulatory framework for crypto-asset service providers that includes AML/CFT rules, KYC regulations, market surveillance expectations, and licensing requirements.
A Financial Services Permit (FSP) is required to carry on a Regulated Activity in relation to Virtual Assets in or from the ADGM.
The Financial Services Regulatory Authority (FSRA) requires that its AML Rules apply to all Authorized Persons, including those conducting a Regulated Activity in relation to Virtual Assets.
Crypto transaction monitoring software can address these requirements by combining on-chain and off-chain data to mitigate your platform’s money laundering risks.
Entities involved in virtual assets are required to fulfill know-your-customer obligations under the Virtual Asset Framework.
Crypto onboarding verification software can streamline retail and institutional customer onboarding, including KYC verification and customer & company due diligence.
ADGM’s regulatory framework requires that trading entities using Virtual Assets “meet requirements in relation to market surveillance, settlement, transaction recording, transparency and other systems and controls.” Multilateral trading facilities (MTFs) – which FSRA defines to include crypto exchanges – “are required to operate an effective market surveillance program to identify, monitor, detect and prevent conduct amounting to market misconduct and/or Financial Crime. Given the significant risks, and the nascent nature and constant pace of development of the Virtual Asset industry, an MTF’s surveillance system will need to be robust, and regularly reviewed and enhanced.”
