The Abu Dhabi Global Market Financial Authority has launched the legal structure that will govern the cryptocurrency market and all their associated affiliates. The regulations will apply to exchanges, institutions providing custody services and other intermediaries. These have been drawn up following public consultations over the past 2 months.

"This legal framework is intended to address the full range of risks associated with cryptographic activities, including the risks of money laundering and financial crime, consumer protection, technology governance, custody and exchange operations," the official statement said.

Abu Dhabi Global Market is a financial supervisory authority that works with international financial centers, institutions and other business management authorities to act as regulators for different types of markets and activities.

According to the statements of its representatives, the main role of surveillance on the crypto market will be taken over by the Financial Services Regulatory Authority (FSRA).

FSRA has issued a 34-page document explaining in detail how to authorize and run the activities associated with cryptocurrencies, as well as the rules and laws applicable to those who want to work in this space.

"Applicants qualifying for the Spot Crypto Asset Framework authorization will benefit from a FSP [Financial Services Permit] to conduct OCAB's regulated business [Operation of a Crypto Asset Business]," the document states. According to the Spot Crypto Asset framework: "Market intermediaries (eg broker, custodian, asset managers) and crypt-active exchanges that trade or manage encrypted assets will need to be licensed / approved by FSRA as OCAB holders. Only activities in encrypted assets are allowed. "

The FSRA noted that some changes were implemented as a result of public consultations, including a system of exchange-rate taxation based on daily trading volume.

In October 2017, the FSRA published a similar document setting out the ICO regulations.

From a legal point of view, cryptocurrencies are not considered as a means of payment, but as an "exchange medium for goods and services"