Abu Dhabi Markets Watchdog Mulls Crypto Exchange laws

Abu Dhabi's markets regulator is considering drawing up a superior framework for cryptocurrency exchange operations.

In AN announcement Sunday, the money Services regulatory agency (FSRA) of the United Arab Emirates's capital world Market same it's "reviewing and considering the event of a strong, risk-appropriate regulative framework to manage and supervise activities of virtual currency exchanges and intermediaries."

The FSRA same the move would be AN addition to steerage it issued in Gregorian calendar month 2017 concerning a regulative approach toward token-based fundraising activities like initial coin offerings.

Given the rising quality of cryptocurrencies within the region, the FSRA same then that it might apply existing anti-money lavation and know-your-customer (KYC) rules to token sales, classifying some as securities et al. as commodities.

The FSRA currently notes its considerations over the problems of cryptocurrencies getting used in hiding and terrorist finance, moreover because the risk of cyberattacks. Like its counterparts in different countries and regions like Japan, the EU and Singapore, the FSRA same it is also exploring a framework to supervise cryptocurrency exchanges concerning these risks.

According to the statement, the agency will conceive to embody informative input from trade corporations and relevant skilled bodies.

The FSRA any cautions that before the regulative framework is in situ, investors and exchanges ar suggested to approach the agency for discussion on correct treatment of cryptocurrency transactions.

The news comes simply every week once the United Arab Emirates' securities regulator issued a warning to residents on the danger of finance in token-based fundraising activities.