Abu Dhabi Introduces Regulatory Framework for DAOs
Abu Dhabi, the second-most populous emirate in the UAE, is making strides in digital asset innovation by introducing a formal regulatory framework for Decentralized Autonomous Organizations (DAOs) and other digital ledger entities. This move aims to position Abu Dhabi as a leader in the Middle East's digital asset sector.
Regulatory Clarity for the Digital Assets Sector
The new framework allows DAOs to operate legally and issue tokens to their members, providing regulatory clarity for firms in the digital assets sector. Abu Dhabi is actively competing with Dubai to become a crypto hub, and this regulatory development is part of a larger initiative to foster blockchain and digital asset innovation in the region.
Revolutionizing the Blockchain Sector
The Abu Dhabi Global Market (ADGM) has introduced the DLT Foundations Regime, a forward-looking approach to establishing global standards for blockchain networks. This framework aims to revolutionize the blockchain sector by enhancing efficiency and transparency. The ADGM consulted extensively with industry stakeholders to develop this regulatory framework.
Nurturing an Ecosystem for Technological Progress
His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized Abu Dhabi's dedication to nurturing an ecosystem that fosters technological progress. This endeavor not only elevates Abu Dhabi's reputation as a forward-looking legal jurisdiction but also offers advantages to the broader Web3 community by promoting improved governance and decentralized principles.
Abu Dhabi's Position as a Cryptocurrency Hub
Abu Dhabi is actively competing with Dubai to establish itself as a cryptocurrency hub. The regulatory framework introduced in Abu Dhabi provides companies with clear and reliable regulations that are distinct from regulations found in other parts of the world. This offers a valuable option for companies seeking a favorable regulatory environment.
Embracing the Digital Assets Sector
Abu Dhabi's efforts align with Dubai's endeavors to embrace the digital assets sector. Recently, Dubai inaugurated an economic free zone dedicated to digital and virtual asset service providers in emerging technologies such as blockchain, metaverse, nonfungible tokens, and decentralized applications. Together, Abu Dhabi and Dubai are positioning the UAE as a key player in the digital asset landscape.
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