Abu Dhabi the emirate’s free zone comments on NFT rules

 

Abu Dhabi Global Market (ADGM), the emirate’s free zone, published a discussion paper on March 21 named “ Proffers for advancements to capital requests and virtual means in ADGM.” The document contains draft guidelines that, among other asset classes, cover nonfungible commemorative (NFT) trading. The paper proposes that companies with a license from the free zone’s fiscal controller be allowed to grease NFT trading.

Along with sections devoted to traditional fiscal instruments, the document contains a little further than a runner on virtual means and NFTs. In this section, the free zone’s principal controller, the Financial Services Regulatory Authority (FSRA), describes NFTs as intellectual property rather than “ specified investments or fiscal instruments.” It also proposes to allow multinational trading installations (MTFs) and Virtual Asset Custodians (VAC) to operate NFT commerce.

The document also mentions that deals in NFTs may spark the demand to misbehave with ADGM’sAnti-Money Laundering (AML) and Warrants Rules.

At this point, as the document specifies, FSRA isn't proposing a formal nonsupervisory frame for NFTs. The discussion paper is open for comment until May 20, and encourages stakeholders to partake their studies on several major questions, for illustration, “ What types of NFTs should be permitted to trade upon MTFs?” and “ How would it be stylish to integrate third- party NFT registries?”

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ADGM is one of the United Arab Emirates'three major free profitable zones that host virtual asset service providers (VASPs), and the first one to get its nonsupervisory frame back in 2018. Last week, however, it was the UAE’s another free zone — Dubai Multi Commodities Centre (DMCC) — that made the captions by granting its lately enacted crypto license to FTX and Binance exchanges .