New Guidelines Set to Fuel Web3 Growth in Abu Dhabi

Abu Dhabi anticipates a web3 boost with ADGM’s groundbreaking regulations, set to reshape the landscape significantly. ADGM announced these guidelines, positioning them to shape the operations of firms based on blockchain within the jurisdiction. The emphasis strongly revolves around fostering decentralized autonomous organizations (DAOs) and web3 groups.

Navigating the Regulatory Wave: Streamlined Entry for Blockchain Foundations

The rules aim to usher blockchain foundations into the international free trade zone, attract capital, and enhance local market competitiveness. ADGM Chairman Ahmed Jasim Al Zaabi highlights their crucial role in the ongoing web3 strategy. He envisions a future of global benchmarks, transparency, and efficiency.

Transparency and Tokenomics: Key Criteria for Blockchain Foundations

To set up a Distributed Ledger Technology (DLT) foundation, founders must adhere to various conditions, spanning registration, membership, and disclosures. This includes filing a signed Charter to the Registrar, presenting a White Paper, tokenomics, and DLT details. Notably, the regulations establish a clear distinction between the license of a foundation and a Financial Service Permission. Contravention leads to fines. DLT foundations can actively pursue approved activities outlined in their charters. They face stringent requirements for disclosure and must maintain a council of two to sixteen members. The initial application fee for DLT foundations is set at $1,470.

These transformative regulations align with the Middle East’s push into the crypto frontier. They mirror European efforts, aligning with their strategies to clarify rules, attract investments, and emphasize the development of web3 and AI hubs. These transformative regulations are instrumental in the Middle East’s push into the crypto frontier. Dubai, a key player in this movement, has successfully attracted numerous projects to the region. A recent survey highlights a growing preference for Bitcoin, solidifying the UAE’s position as a leader in the crypto revolution. The dominant preference is at 72%, accompanied by a strong appetite for blockchain and AI integration.