The Distributed Ledger Technology (DLT) Foundations Regulations 2023 were unveiled by the Registration Authority (RA) of Abu Dhabi Global Market (ADGM), initiating a significant step in the regulatory development of digital assets on a regional and global scale. This novel framework, unveiled just now, is designed to meet the particular legal needs of Decentralised Autonomous Organisations (DAOs), Blockchain Foundations, and the broader cryptocurrency space.
The implementation of this new regime marks a significant advancement and is consistent with ADGM’s plan to support larger blockchain and digital asset projects. Its goal is to promote an efficient and transparent future for Web3 and blockchain technology.
Being the first in the world, the DLT Foundations Regulations 2023 are seen as a global standard that other regions will be inspired to emulate.
The legislation has been painstakingly designed to offer a solid framework for DLT Foundations and DAOs, making it easier for them to operate and issue tokens while also taking into account the special requirements of the Blockchain sector. It’s evidence of ADGM’s ability to predict the industry’s shift towards a more decentralised governance system. This regime is considered appropriate for conventional Foundations seeking to enhance their activities through DLT, providing a cohesive approach for tasks related to digital assets.
The Honourable Chairman of ADGM Ahmed Jasim Al Zaabi emphasised that the DLT Foundations Regime is a huge step forward, reiterating ADGM’s proactive approach rooted in extensive cross-industry dialogue and collaboration with numerous stakeholders. This project is driving the industry towards a future characterised by international standards with increased efficiency and transparency by transforming the Web3 and blockchain landscape. It was thanks to the valuable insights that participants in the DLT industry provided during the public consultation that preceded the regime’s enactment that the regulations were improved.
Digital Ledger Technology has become the cornerstone of the global digital assets industry due to its rapid advancement in recent years. Being a well-known International Financial Centre (IFC), ADGM persists in supporting technological advancement, creating an atmosphere that is favourable for the growth of cryptocurrency projects.