The Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) has laid out its goals for the 2024 Business Plan, putting a spotlight on innovation, especially in the realm of virtual assets (VAs).
Since 2018, the FSRA has been proactive in setting up rules specifically tailored for virtual assets. This move led to approving various entities working in this area. Their framework matches global standards, with a big step being the release of ‘Guiding Principles for the Financial Services Regulatory Authority’s Approach to Virtual Asset Regulation and Supervision’ in September 2022, which strengthened their international involvement.
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Looking ahead to 2024, the FSRA plans to revamp and improve its regulatory framework for virtual assets. They’ll draw from their experience in overseeing virtual asset businesses and keeping an eye on global regulatory changes. The goal is to create a framework that can adapt to the evolving landscape while being solid and responsive.
Emmanuel Givanakis, the Chief Executive Officer of the FSRA, highlighted, “Our Business Plan for 2024 lays out our strategy, mainly focusing on enabling both traditional and new activities in the financial services sector. We’re dedicated to evolving our regulatory framework in sustainable finance and digital assets. Innovation is key to our plans, aiming to improve how we regulate and supervise financial services. Our engagement with stakeholders is crucial to ensure we have a comprehensive and progressive regulatory framework that’s relevant to both current and future needs while keeping up with international standards.”
A significant part of the FSRA’s strategy acknowledges the potential of decentralized finance (DeFi) solutions. They plan to welcome DeFi solutions to the RegLab, emphasizing their commitment to nurturing innovation while ensuring regulatory integrity.
In essence, the FSRA’s 2024 Business Plan is all about pushing boundaries in the virtual asset space, establishing ADGM as a leading center for digital financial activities. Their plan assures that the regulatory framework remains adaptable and supportive of new technologies, ultimately contributing to the sector’s growth and efficiency.