The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has released a new consultation paper outlining a proposed regulatory framework for activities involving Fiat Referenced Tokens (FRTs). The move signals a significant step towards clarifying the rules of engagement for stablecoins within the international financial centre and invites public feedback on the proposals.
Building on Existing Foundations
The new proposals are designed to build upon the initial regulatory framework for the issuance of FRTs that the FSRA introduced in December 2024. While the previous rules focused on entities looking to issue stablecoins, this new consultation seeks to broaden the scope to cover a wider range of activities related to these digital assets.
Key Areas of the Proposed Framework
The consultation paper details the FSRA’s proposed approach across several key areas. This includes establishing guidelines for the acceptance and use of FRTs within ADGM, expanding the scope of Regulated Activities that firms can undertake in relation to these tokens, and setting clear rules for authorized persons who hold or control FRTs on behalf of their clients. The paper also suggests amendments to the existing requirements for authorized FRT issuers.
Invitation for Public Comment
The FSRA is actively seeking input from industry stakeholders, market participants, and the general public on the proposed framework. The consultation period will remain open until October 7, 2025, providing an opportunity for the ecosystem to contribute to the development of these regulations.
About the FSRA
The Financial Services Regulatory Authority is the independent financial regulator of the Abu Dhabi Global Market. It is responsible for establishing a robust, transparent, and efficient regulatory framework to uphold the integrity of the financial hub. The FSRA’s mandate includes the regulation and supervision of financial services provided within or from the ADGM.
Source: Fintechnews Middle East
