Abu Dhabi’s International Finance Center Calls for Comments on Draft Legal Framework for DLT Project | coindesk JAPAN | Coindesk Japan

The Abu Dhabi Global Markets (ADGM) Registrar has released a draft legal framework for distributed ledger technology (DLT), seeking input on disclosure, liquidation, governance structures, and more.

ADGM is an international financial center in the United Arab Emirates (UAE) with a special licensing regime for crypto asset (virtual currency) service providers supervised by financial regulators. The agency is not an ADGM oversight body, so the proposal is limited to service types and governance issues.

The proposed “DLT Foundation Regulations 2023” aims to set a bespoke legal framework that takes into account “the characteristics of the Foundation that may be attractive to developers of DLT projects”, targeting decentralized It also includes Decentralized Autonomous Organizations (DAOs), the preferred governance structure for type initiatives.

The proposal also includes reporting, disclosure, publication, bankruptcy and liquidation measures.

“This consultation paper will be of interest to those operating or planning DLT projects, those engaged in crypto-related activities and their legal advisors, as well as DLT industry participants, associations and stakeholders,” the document said. Says.

The UAE emirates of Abu Dhabi and Dubai have worked to establish regulations that could attract blockchain and cryptocurrency companies to the region. Dubai enacted a crypto regulatory framework earlier this year, and the UAE last week announced federal licensing requirements for crypto service providers seeking to operate in the country. Also in February, Abu Dhabi announced a $2 billion investment to support the Web3 project.

The deadline for comments on the draft framework is May 12.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Abu Dhabi’s Financial Free Zone Proposes Legal Framework for Decentralized Economy