Abu Dhabi Global Market (ADGM), the emirate’s international financial free zone, is advancing plans to establish a dedicated legal framework for distributed ledger technology (DLT) projects, including decentralized autonomous organizations (DAOs).
The ADGM Registration Authority has initiated a consultation seeking feedback on its proposed ‘DLT Foundations Regulations’. This initiative aims to create a bespoke legislative environment specifically designed to address the unique operational and structural needs of entities built on DLT.
The proposed framework focuses on critical areas such as governance structures, mandatory reporting and disclosures, and specific measures for insolvency and liquidation procedures. This targeted approach seeks to provide legal clarity and operational security for DLT-based ventures.
This move aligns with the broader strategy of the United Arab Emirates, particularly Abu Dhabi and Dubai, to position itself as a leading global hub for blockchain and cryptocurrency innovation. The UAE has actively pursued regulatory developments, including significant initiatives like a $2 billion fund dedicated to supporting Web3 projects.
The introduction of the DLT Foundations Regulations underscores ADGM’s commitment to attracting blockchain and crypto firms by offering a regulated and supportive environment tailored to the evolving digital asset landscape.
