Abu Dhabi Global Market launches crypto hub amid emergence of new virtual assets

The platform aims to connect users with the financial centre's existing virtual asset firms

ADGM on Wednesday said it launched a crypto hub, a virtual platform, during Abu Dhabi Finance Week. Khushnum Bhandari / The National
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The Abu Dhabi Global Market (ADGM) has launched Abu Dhabi Crypto Hub, a web-based interactive platform that provides users access to information and connects with the financial centre's existing virtual asset firms.

The virtual platform was launched during Abu Dhabi Finance Week.

“Given the rapid emergence of new virtual assets such as cryptocurrencies and other related assets, ADGM is leading the way to introduce progressive frameworks and regulations around these technologies and developments,” ADGM said in a statement on Wednesday.

The launch of Abu Dhabi Crypto Hub is, "therefore, an important representation of the strategic initiatives taken by ADGM in support of economic diversification and the growing role of Abu Dhabi as a financial hub, addressing the current and future needs of the market through innovative technologies”, it said.

In September, the Financial Services Regulatory Authority (FSRA), the regulator of Abu Dhabi's financial hub, published guiding principles on its approach to virtual asset regulation and supervision to outline its expectations for the asset class and service providers in the sector.

The principles will complement ADGM’s regulatory framework for spot virtual asset activities, the financial regulator said at the time.

They also aim to enable greater regulatory collaboration and cohesion between the FSRA and other authorities in the UAE and globally.

The move comes as ADGM continues to attract a number of major companies dealing with cryptocurrencies to set up a base in its regulated financial free zone.

The Abu Dhabi Global Market on Al Maryah Island. Victor Besa / The National

Last December, it granted regulatory permission to the virtual asset trading platform Hayvn.

In April, Kraken, one of the world's biggest cryptocurrency exchanges, secured a regulatory licence from the ADGM to operate its virtual asset trading platform.

Blockchain services provider Binance will also offer its services from the ADGM after obtaining approval from the FSRA, it said on Wednesday.

Updated: November 16, 2022, 4:15 PM