Abu Dhabi, the second-most populous emirate in the United Arab Emirates, has implemented a formal Distributed ledger technology (DLT) regulatory framework for decentralized autonomous organizations (DAOs) and other digital ledger entities.
By enabling DAOs to function lawfully and distribute tokens to their members, the novel framework furnishes digital asset firms with regulatory certainty.
In addition to Dubai, Abu Dhabi aspires to become a crypto center; this action is a component of a more significant effort to support initiatives in the blockchain and digital asset sectors.
Distributed ledger technology (DLT), which underpins blockchain networks, is a system for ensuring the accuracy and security of data by recording and preserving it on multiple ledgers within a network.
In light of comprehensive consultations with industry stakeholders, the Abu Dhabi Global Market (ADGM) has implemented the DLT Foundations Regime, which reflects a proactive stance.
According to the statement, this framework has the potential to transform the blockchain industry by improving transparency and efficiency, in addition to setting international benchmarks.
Ahmed Jasim Al Zaabi, Chairman of ADGM, underscored Abu Dhabi’s swift metamorphosis into a center for pioneers in digital assets, emphasizing a commitment to cultivating an environment that promotes technological advancement.
The initiative of the ADGM enhances Abu Dhabi’s standing as a progressive legal jurisdiction and provides significant benefits to the Web3 community as a whole.
Abu Dhabi establishes a model for global financial centers by advocating for enhanced governance and recognizing the decentralized paradigm of this industry.
Abu Dhabi is proactively vying for the status of a center for cryptocurrencies, mirroring Dubai’s efforts to embrace the digital assets industry. For businesses searching for regulations distinct from those in other regions, the regulatory framework in Abu Dhabi presents a favorable alternative in the form of transparent and dependable policies.
Dubai has recently established an economic free zone dedicated to service providers of digital and virtual assets in emerging technologies, including but not limited to the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens, decentralized applications, DAOs, and others.
