- The Abu Dhabi Global Market (ADGM) has introduced the Distributed Ledger Technology (DLT) Foundations Regulations 2023, marking a significant milestone in digital asset regulations.
- This legal framework provides comprehensive guidelines for DLT Foundations and decentralized autonomous organizations (DAOs) to meet the specific needs of the blockchain industry.
- The world’s first of its kind, it is designed to cater to blockchain foundations, Web3 entities, DAOs, and traditional foundations seeking to enhance their operations through DLT.
The Registration Authority (RA) of the Abu Dhabi Global Market (ADGM) has achieved a significant milestone in the development of digital asset regulations by introducing the Distributed Ledger Technology (DLT) Foundations Regulations 2023. This groundbreaking legal framework has been carefully crafted to provide a comprehensive set of guidelines for DLT Foundations and decentralized autonomous organizations (DAOs), tailored to meet the specific needs of the blockchain industry.
The launch of this innovative regulatory framework aligns with ADGM’s broader strategy to support initiatives in the blockchain and digital asset sectors. It is the world’s first of its kind, specifically designed to cater to blockchain foundations, Web3 entities, DAOs, and traditional foundations seeking to enhance their operations through DLT.
This regulatory regime is poised to bring about a transformation in the industry by offering a unified solution for digital asset-related activities and the wider foundation landscape, ultimately paving the way for a more transparent and efficient future.
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ADGM’s DLT Foundations Regime not only provides an effective way to establish and promote governance but also acknowledges the industry’s growing need for decentralization. The introduction of this regulatory framework follows a public consultation involving participants from the DLT industry to gather feedback and refine the regulations. Consequently, ADGM solidifies its position as a global leader in the regulation of digital assets.
Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized the role of Abu Dhabi as an emerging hub for global players in digital asset development. He highlighted the significance of the DLT Foundations Regime, underlining ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders. The new regime is expected to drive positive change in the digital asset sector, transforming the blockchain and Web3 landscape and setting global benchmarks for enhanced transparency and efficiency.
The rapid evolution of digital ledger technology in recent years has positioned it as a central player in the global digital asset sector. ADGM, as a leading International Financial Center (IFC), remains dedicated to championing technological innovation and supporting crypto initiatives.
The significance of the newly introduced regulatory framework lies in its ability to enable foundations to effectively utilize their accumulated funds. Typically, these foundations hold substantial resources that they allocate towards growing the ecosystem of their respective protocols. This allocation includes initiatives such as developer training, funding startups, and other activities aimed at strengthening the ecosystem.
Importantly, these funds are generated from the tokens they create, making them a vital component of their sustainability and their capacity to drive innovation within the digital asset space.