Coining Stability: ADGM Opens Doors For Stablecoin Issuance

Key takeaways

• ADGM has amended the Financial Services and Markets Regulations 2015 to regulate Fiat-Referenced Tokens.
• Issuing FRTs is now a regulated activity requiring Category 3C Financial Services Permission from the FSRA.
• Entities licenced by the FSRA that issue non-AED-based stablecoins within ADGM or distribute them outside the UAE will not require licensing from the CBUAE.
• The scope of payment services has been expanded to include services related to FRTs, such as transfer, settlement, and safeguarding of these tokens.
• New transparency measures mandate the inclusion of Accepted FRTs in the public record maintained by the FSRA.
• Specific exclusions clarify that certain token transfers without intermediaries are outside the scope of regulated activities.