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Abu Dhabi Securities Exchange (ADX) issues paper on Distributed Ledger Technology Crypto Assets

ADX assessed to play an instrumental role in shaping the future of this new asset class for the region, including blockchain, crypto and tokenizaton

Abu Dhabi Securities Exchange (ADX) has issued a paper ‘Crypto Assets: Moving from theory to practice’ The paper drives to facilitate best practice and provide recommendations for developing platforms in the Crypto Asset space ADX is making a transition from conventional assets to more encrypted assets, which the Exchange is spearheading for the region

The paper is created in cooperation with global Central Securities Depositories, asset managers and custodians, and under the patronage of the International Securities Service Association, ISSA in which ADX is an active member.

The paper drives to facilitate best practice and provide recommendations for developing platforms in the Crypto Asset space.  The paper outlines recommendations and best practice considerations in relation to issuance, settlement, safekeeping, asset servicing and regulation of Crypto Assets.

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Focusing on inter-operability, the paper ensures that the securities industry can fully benefit from DLT-based solutions.  Each dedicated chapter addresses the fundamentals of the opportunity, the challenges to delivery as well as potential solutions to issues in a way that is easily accessible to interested parties.

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The publication comes as ADX makes a transition from conventional assets to more encrypted assets, which the Exchange is spearheading for the region. Further the paper comes at an opportune time and follows on from the issuing of Crypto-Assets regulations draft by the Security Commodity Authority (SCA), which will provide a clear framework for regional digital assets. The regulations and the paper will combine well together as they both intend to serve Crypto-Assets directly.

H.E. Khalifa Salem Al Mansouri, Chief Executive of ADX said: “At ADX, we have focused on the trustworthiness, safety and efficiency of crypto-asset markets as a priority area, to give the UAE a head start in the race for this rapidly developing area of FinTech and accelerate the growth of more institutional investment. In order to create a robust framework to attract investment, ADX has worked to ensure high levels of corporate governance and we are delighted to be recognised by ISSA as such in this paper.”

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Al Mansouri continued: “ADX put in place robust business and technical standards to protect its investors and took advantage of these proven records to actively contribute to the content development of the paper. This included an analysis of ADX’s regulations and responsibilities, concluding that new forms of governance as well as operations for distributed networks are required.” 

Download: “Crypto Assets: Moving from Theory to Practice” here