New Crypto Asset Framework In Abu Dhabi Global Market Free Zone

On 25 June 2018, the Abu Dhabi Global Market (ADGM) launched a regulatory framework, known as the "Spot Crypto Asset Framework", to enable applicants to apply to operate a crypto asset business in or from the ADGM (the Framework). The Framework follows on from the ADGM's successful completion of a public consultation process earlier this year, and is comprised of ADGM Regulations and Financial Services Regulatory Authority (FSRA) Rules governing Crypto Asset Activities, a Guidance Note and Application Form.

Under the Framework, a "Crypto Asset" is treated as a commodity.  It is defined as "a digital representation of value that can be digitally traded and functions as (1) a medium of exchange; and/or (2) a unit of account; and/or (3) a store of value, but does not have legal tender status in any jurisdiction. A Crypto Asset is (a) neither issued nor guaranteed by any jurisdiction, and fulfils the above functions only by agreement within the community of users of the