Abu Dhabi Regulating Authority Head Says Crypto Space Requires Stronger Regulation
The International Financial Center and Free Zone’s regulatory head in Abu Dhabi has said that there is a need for more stringent regulations with respect to the Crypto trading and ICO (Initial Coin Offering) space. This he said was in line with the ever-growing global Crypto industry.
Strong Regulations For Crypto Sector
With the FSRA (Financial Services Regulatory Authority) having issued its guidelines with respect to digital coins and ICOs (effectively regulating the sector) close to a year ago, it is now sharing the framework with other regulatory authorities around the globe.
Richard Teng, the CEO of FSRA, has said that the regulation of the Crypto space needs to be done properly or else the probability of financials crimes being committed in the sector will skyrocket. He added that with every digital token that is lost or stolen, the confidence many have in the Crypto space is eroded.
He FSRA chief, however, noted that the sector has undergone a lot of change within the last few months. He said that these changes have taken place in a sector which is ever changing and that looks past the uncertainty of crypto tokens leading to the sector not only being recognized as one that is rapidly growing but also one which proper regulations are required to boost development and promote the sector.
Cryptocurrencies Are Commodities
The CEO said that the FSRA was confident that its guidelines, which it has shared with other regulators around the world including the SEC (which is the regulating body in the United States), Financial Conduct Authority and Bank of England, the UK Treasury and other regulators in Japan, Hong Kong, and Singapore, will be able to provide solutions to these risks boosting the confidence that people have for the crypto sector.
The statements made by the head of the regulatory body in Abu Dhabi comes in the wake UK lawmakers urging the national government to make the regulation of the Crypto and ICO space a priority according to a recently published Treasury Committee Report.
The ADGM (Abu Dhabi Global Market) was among the first to draft guidelines applicable to the Crypto-based businesses in financial centers and trade zones. The guidelines were issued almost a year ago and included stipulations for both Crypto exchanges and Crypto wallet providers. It also stated that Crypto tokens were to be considered commodities, much like other precious metals.
ADGM Acknowledges Crypto Tokens As Mode Of Payment
Wai Lum Qwok, the director of capital markets for FSRA, said that the authority faced a lot of challenges when looking to regulate a sector which not designed to be regulated last year when speaking about the regulation of Bitcoin and other Cryptocurrencies. He, however, insisted that the authority was open to the possibility at a later time.
Even though in countries like Saudi Arabia the central banks have outlawed the trading of Cryptocurrencies ADGM, which is a member of the Blockchain consortium which is centered on banking and is led by R3, noted the use of crypto tokens for payments this year.
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