Abu Dhabi Securities Exchange (ADX) issued a paper covering the topics of distributed ledger infrastructure and cryptocurrency on Tuesday, reported Emirates News Agency.
As per the $135 billion Bourse, the “thought paper,” identifies the operational and technical parameters required to issue crypto-assets. Particularly it provides assistance to financial institutions that are going through a transformation from conventional asset issuance to more encrypted asset issuance.
Chief Executive of ADX, Rashed Al Blooshi, confirmed that their announcement came in light of the response to the growing blockchain infrastructure development in the region. Acknowledging how their practices of regulation will require to pace up as the transformation to the new finance takes place.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets,” Blooshi mentioned. “At ADX, we embrace new and innovative technology and are always looking to capitalize on advancements in FinTech; particularly in crypto-assets to optimize the benefits we offer to our investors and stakeholders.”
Abu Dhabi is seeing a large amount of private and public digital ledger projects (DLT), including transportation, international trade, energy, education and healthcare. All of these DLT projects will likely to issue native tokens for their participants and stakeholders to prove ownership and voting rights. Moreover, the projects may fail without any results as the market has previously experienced. Which has alerted the local regulators to take note of their outdated regulations that may not be implemented on the advanced FinTech sectors like DLT and their unique ways of issuing assets.
Issued in partnership with Central Securities Depositories, the ADX thought paper, might be the first crucial step towards ensuring maximum investor protection in the rising cryptocurrency sector. The Emirates Securities and Commodities Authority (ESCA) has already shown their interest in introducing Initial Coin Offering for capital markets, as per their October announcement this year. ADX is in the development process of an ICO trading platform for the initiatives.
ESCA is currently drafting the regulations for the ICO along with an undisclosed international organization which as per the rumors, is the International Securities Service Association, ISSA, the organization responsible for providing the thought paper of ADX on blockchain and crypto.
Abu Dhabi Bourse Presence a Cryptocurrency Thought Paper.