Abu Dhabi Global Market (ADGM) Proposes DLT Legislation Framework: Targeting Disclosure, Governance, and Liquidation Structures
The ADGM’s Registration Authority is seeking feedback on its proposed “DLT Foundations Regulations 2023,” aiming to establish a tailored legislative framework for distributed ledger technology (DLT).
This framework will cover matters of service type and governance, including disclosures, liquidation, and reporting measures. Decentralized autonomous organizations (DAO) are among the governance structures that will be addressed in the proposal.
The proposed regulations also cover insolvency and liquidation measures, and are of interest to any persons operating or planning DLT projects, engaging in digital asset-related activities, and their legal advisors, as well as DLT industry participants, associations, and stakeholders.
The UAE has been working towards establishing regulations that could attract blockchain and crypto firms to the region, with Dubai enacting a crypto regulatory framework earlier this year and the UAE unveiling federal licensing requirements for virtual asset service providers last week. In addition, Abu Dhabi kicked off a $2 billion initiative to support Web3 projects in February.