Abu Dhabi rolls out draft recommendations for NFT trading

Abu Dhabi Global Market (ADGM), the emirate’s escaped zone, published a consultation insubstantial connected March 21 titled “Proposals for enhancements to superior markets and virtual assets successful ADGM.” The papers contains draught guidelines that, among different plus classes, screen nonfungible token (NFT) trading. The insubstantial proposes that companies with a licence from the escaped zone’s fiscal regulator beryllium allowed to facilitate NFT trading.

Along with sections dedicated to accepted fiscal instruments, the papers contains a small much than a leafage connected virtual assets and NFTs. In this section, the escaped zone’s main regulator, the Financial Services Regulatory Authority (FSRA), describes NFTs arsenic intelligence spot alternatively than “specified investments oregon fiscal instruments.” It besides proposes to let multilateral trading facilities (MTFs) and Virtual Asset Custodians (VAC) to run NFT marketplaces.

Related: The crypto oasis: How the UAE became the Middle East’s integer plus champion

The papers besides mentions that transactions successful NFTs whitethorn trigger the request to comply with ADGM’s Anti-Money Laundering (AML) and Sanctions Rules.

At this point, arsenic the papers specifies, FSRA is not proposing a ceremonial regulatory model for NFTs. The consultation insubstantial is unfastened for remark until May 20, and encourages stakeholders to stock their thoughts connected respective large questions, for example, “What types of NFTs should beryllium permitted to commercialized upon MTFs?” and “How would it beryllium champion to integrate third-party NFT registries?”

ADGM is 1 of the United Arab Emirates' 3 large escaped economical zones that host virtual plus work providers (VASPs), and the archetypal 1 to get its regulatory model backmost successful 2018. Last week, though, it was the UAE’s different escaped portion — Dubai Multi Commodities Centre (DMCC) — that made the headlines by granting its freshly legislated crypto licence to FTX and Binance exchanges.