Abu Dhabi, the second most populous emirate in the United Arab Emirates, has introduced a formal regulatory framework for decentralized autonomous organizations (DAOs) and other digital ledger entities, as it doubles down on its ambition to be a leader in digital asset innovation within the East. Half.
The new framework allows DAOs to operate legally and issue tokens to members, providing regulatory clarity for digital asset companies. Abu Dhabi aims to become a crypto hub alongside Dubai, and this move is part of a broader initiative to encourage initiatives in the broader blockchain and digital assets space.
Distributed ledger technology (DLT), which provides the foundation for blockchain networks, is a system of recording and storing information across different ledgers within a network to ensure data accuracy and security.
Abu Dhabi Global Market (ADGM) has taken a forward-looking approach in introducing the DLT Foundation Regime, following extensive consultation with industry stakeholders. Beyond setting global standards, this framework is set to revolutionize the blockchain sector by improving efficiency and transparency, according to the statement.
ADGM Chairman Ahmed Jasim Al Zaabi emphasized Abu Dhabi’s rapid transformation into a hub for digital asset innovators, underlining the dedication to nurturing an ecosystem that fosters technological progress.
ADGM’s effort elevates Abu Dhabi’s reputation as a forward-thinking legal jurisdiction and offers substantial benefits to the broader Web3 community. By promoting better governance and recognizing the decentralized principles of this sector, Abu Dhabi sets a precedent for international financial centers.
Related: Dubai VARA grants ‘initial approval’ to crypto company WadzPay
Abu Dhabi is actively racing to establish itself as a cryptocurrency hub, aligning with Dubai’s efforts to embrace the digital asset sector. Abu Dhabi’s regulatory framework offers a valuable option for companies seeking clear and reliable regulations that can be distinguished from regulations found in other parts of the world.
As previously reported by Cointelegraph, an economic free zone dedicated to digital and virtual asset service providers in emerging technologies such as metaverse, blockchain, utility tokens, virtual asset wallets, non-fungible tokens, DAOs, decentralized applications and others was recently created. Web3 related businesses. inaugurated in Dubai.
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