Abu Dhabi Securities Exchange Releases Thought Paper on Digital Assets

A Thought Paper

Looking to expand their services, the ADX (Abu Dhabi Securities Exchange) have their sights on facilitating tokenized securities.  In their recently released paper, the exchange delves into their planned incorporating DLT (distributed ledger technologies) into their operations.

Making a Blueprint

With their place in finance, the ADX is hoping to create a blueprint on how to effectively and efficiently usher in a new form of assets.  They have recognized the trend occurring with regards to cryptocurrencies, and they want to be the ones to demonstrate how implementation should be done.

Governing bodies within the region have been paying extra attention to the crypto-currency related markets as a whole.  In October of 2018, plans to regulate ICOs were approved by the UAE Securities and Commodities Authority.  These plans indicate a stance taken that would deem tokens sold through ICOs as securities.  Although the drafting of said plans have been approved, a final iteration is not expected to be released until Q1 of 2019.

While countries may be hesitant on the future of crypto-related assets, they also do not want to be left behind.  Most nations, including the United States, are in a current state of evaluation and development with regards to their stance on regulation within the market.  There are, however, a few standouts such as China and India that have decided to act with a heavy hand, and place bans on crypto-markets entirely.  The United Arab Emirates do not appear to be one of those nations, as plans such as the one being discussed here take a cautionary, but welcoming stance to innovation in finance.

Words from Balooshi

In reference to the paper, ADX CEO, Rashed Al Balooshi, commented, “ADX continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region…financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets. At ADX, we embrace new and innovative technology and are always looking to capitalise on advancements in FinTech; particularly in crypto-assets to optimise the benefits we offer to our investors and stakeholders”

ADX CEO, Rashed Al Balooshi

Rashed Al Balooshi was appointed CEO of the ADX in 2012.  He continues in that role to date.

It should be noted that these plans released by the ADX are simply ‘thought papers’.  They are a means of hashing out and relaying their intentions towards market regulations.  Final rules and guidelines may vary when implemented.