- FSRA’s latest proposals seek to regulate Fiat-Referenced Tokens (FRTs) to improve stability.
- FSRA will assess feedback submitted by the public until October 3 before making a final decision.
As a seasoned researcher with a penchant for digital finance and a deep interest in the evolution of regulatory frameworks, I find the latest proposals by the FSRA of Abu Dhabi Global Market (ADGM) to be an exciting development. The proposed regulations for Fiat-Referenced Tokens (FRTs) are a significant step towards enhancing the stability and security of the digital asset landscape in the region.
In simple terms, the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) has published Consultation Paper No. 7 for the year 2024. This document proposes changes to their regulatory structure to facilitate the issuance of Fiat-Referenced Tokens (FRTs). This is a significant step as the FSRA aims to refine its approach towards digital assets, focusing on FRTs specifically.
New Regulatory Framework for Fiat-Referenced Tokens
FRTs, a kind of stablecoin, are backed by high-quality, liquid assets in the same currency, enabling quick liquidation with minimal market impact. They are designed for use as a payment method and share characteristics with Stored Value. The FSRA’s modified regulations will specifically handle FRTs, differentiating them from other digital assets and stored value under the Financial Services and Markets Regulations 2015 (FSMR).
As a crypto investor, I appreciate the forward-thinking approach of the Financial Services Regulatory Authority (FSRA) in devising a risk-based strategy for Future Retail Token (FRT) issuance. This innovative regulatory category aligns with global best practices and industry standards, ensuring a secure environment for FRT issuers to operate. The stringent business conduct and regulatory requirements will offer peace of mind, knowing that the FRT issuers are held accountable and adhere to safety protocols.
The Financial Services Regulatory Authority (FSRA) invites the general public to share their thoughts on these suggestions. This feedback will help establish a robust regulatory structure for Fintech Revolutionary Tools (FRTs), one that adapts to the swiftly changing world of digital finance.
Tether’s latest Dirham-linked stablecoin debut coincides with the Financial Services Regulatory Authority (FSRA) of Abu Dhabi’s recent suggestions for tokens referenced by fiat currencies (FRTs). These guidelines emphasize transparency in reserve assets and independent management of the tokens, symbolizing the swift expansion and commitment to regulatory clarity in the UAE’s cryptocurrency sector.
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2024-08-22 16:21