In outlining its intention to take a risk-sensitive strategy, the FSRA mentioned there have been 4 “risk drivers” that it’s going to give “heightened focus” to. One issues the duties of digital asset custodians, even after they outsource actions to third events. Another focus will be on companies’ expertise and governance controls. The FSRA additionally intends to scrutinise whether or not companies are observing regulatory necessities when engaged within the trade of digital belongings, and that it’s going to additionally give attention to guaranteeing there may be compliance with guidelines designed to shield traders in digital belongings – together with disclosure necessities.
The FSRA additionally highlighted its latest recruitment of a new supervisory workforce with expertise within the digital asset trade, which is able to inform its supervision of the market.
The new information additionally confirms the FSRA’s dedication to delivering a strong, clear and constant regulatory framework for companies engaged in digital asset actions, to implementing regulatory breaches, and to making use of “high standards” within the authorisation course of too.
It mentioned: “This discerning approach is shown by the FSRA’s power to only permit VAs that it deems ‘acceptable’, as determined by risk factors such as security and traceability, in order to prevent the build-up of risk from illiquid or immature assets. For stablecoins, in addition to this requirement, we only permit those tokens where price stability is maintained by the issuer holding the same fiat currency it purports to be tokenising on a fully backed 1:1 basis. This therefore currently prevents the use within ADGM of other types of stablecoins, such as algorithmic stablecoins.”
The different regulatory principles the FSRA has communicated are targeted on addressing the danger of cash laundering and different monetary crime within the digital asset market, and on participating with different monetary authorities globally.
Though not legally binding, the principles, in accordance to the FSRA, should be “viewed as a complement to the comprehensive detail of our published framework.”