Abu Dhabi Trading Platform Publishes Crypto Thought Paper
Lack of regulations is being viewed as the main barrier behind the rollout of new products in the sector.
ADX Plans To Have Plan Crypto Products
The Abu Dhabi Securities Exchange has published an introspective document focused on crypto and DLT sector. The paper focuses on structures needed to roll out digital assets. The development was confirmed by a publication of the Emirati government news outlet.
According to the report, the paper was developed after a partnership with the Central Securities Depositories. The exchange also involved the International Securities Service Association. According to ADX, the document will help to establish the relevant technical and operational needs in rolling out assets. The paper also wants to establish mechanisms for assisting banks with their interest in providing cryptocurrency assets.
Rashed Al Blooshi, the CEO of ADX noted that the paper is part of the exchange’s initiative to move away from more traditional assets to digital ones. He pointed out that digital assets are undergoing a faster growth rate in the Middle East. He also spoke on the needs of having market systems. Al Booshi said that such infrastructure helps in setting up governance standards aimed at protecting the interests of investors across the board. He added that market fragmentation will be able to be avoided with established structures in place.
He further affirmed that the ADX will work with partners to push for the development of blockchain initiatives within the region.
UAE’s Plan To Launch ICO In 2019
The development comes a few days after the UAE's national securities controller revealed that plans were underway to roll out an ICO. The ICO slated for next year will target the capital markets.
At the moment, the platform is believed to be working on ICO regulations in partnership with global advisers. It will also work with the Dubai and Abu Dhabi stock environments to set up ICO trading exchanges. Already, the management of the exchange has already given a go-ahead to establish ICOs as securities.
Two months ago, the chief of the financial controller in the UAE, Richard Teng stated that theft of cryptos and lack of global regulations sends a bad message about the sector. He said that the crypto industry requires efficient regulations as a means of lowering the risks from financial crimes. Teng is the head of Financial Services Regulatory Authority, the Abu Dhabi branch.