Abu Dhabi Market Regulators Consider Specifying Cryptocurrencies Exchange

nStorms comments: the cryptocurrency and blockchain has been very active in the area of ​​the United Arab Emirates has recently given a lot of attention to the risks in the activities of tokens. At present, the market regulator in Abu Dhabi has issued a public announcement announcing the consideration of developing a regulatory framework to include cryptocurrencies in the management and to listen to insiders for the purpose of maximizing investor protection and ensuring local encryption The development of the money market.n
nTranslation: Inan
The Abu Dhabi market regulator is considering setting a regulatory framework for the operation of cryptocurrencies.n
The Financial Services Authority (FSRA) on Abu Dhabi’s global markets said in a Sunday note that it is “reviewing and considering developing a strong risk-based regulatory framework to regulate and oversee the funding of virtual currency exchanges and intermediaries activity.”n
The FSRA said the move will be a further step toward its October 2017 guidance on ICO’s regulatory approach.n
At that time, given the increasing popularity of cryptocurrencies in the area, FSRA said it would apply the existing anti-money laundering and KYC rules to token sales and classify tokens respectively as securities and commodities.n
Today, FSRA is concerned about the problem of cryptocurrencies being used for money laundering and terrorist financing and the risks of cyberattacks. Like other regulatory agencies in other countries (such as Japan, the European Union and Singapore), FSRA said it is also exploring a framework for monitoring currency cryptocurrencies for these risks.n
According to the announcement, the agency plans to include advice from industry players and related professional groups.n
The FSRA further cautioned investors and exchanges should contact them before the regulatory framework is in place to discuss the appropriate treatment of crypto currency transactions.n
Just a week ago, the UAE’s securities regulator just issued a warning to residents about the risks of investing in token financing activities.n

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