Citizens and industry experts can submit their insights on the framework by May 12th.
Abu Dhabi Global Market's (ADGM) Registration Authority has invited citizens and experts to share feedback on a proposed legislative framework for distributed ledger technology (DLT).
As the authority is not the ADGM’s financial watchdog, the proposal's scope is restricted to addressing service types and governance matters. According to the consultation paper, the legislative framework focuses on topics like liquidation, disclosures, and governance structures.
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The "DLT Foundations Regulations 2023" intends to establish a customized legislative framework that takes into account "features of foundations that might be attractive to developers of DLT projects," including decentralized autonomous organizations (DAO).
The proposed regulations also encompass reporting, disclosures, publication, insolvency, and liquidation measures. Based on the ADGM Registration Authority, the document is dedicated to any entity working with DLT projects.
This Consultation Paper is of interest to any persons operating or planning DLT projects, persons engaging in digital asset related activities and their legal advisors, as well as DLT industry participants, associations, and stakeholders.
The UAE's Abu Dhabi and Dubai have been working on various regulations to lure blockchain and crypto companies to the region.
Earlier this year, Dubai implemented a crypto regulatory framework, while the UAE introduced federal licensing requirements for virtual asset service providers (VASPs) seeking to operate in the country.
With a deadline of May 12th for feedback on the proposed legal framework, Abu Dhabi is taking active steps to establish a robust legislative environment for the decentralized economy, in line with the UAE's broader efforts to attract blockchain and crypto businesses.
In other Abu Dhabi-related news, in February, the news broke that crypto exchange Kraken is allegedly closing its Abu Dhabi office. Shortly after that, Kraken revealed that it was halting the support for transactions made in the United Arab Emirates currency, the dirham.
