Abu Dhabi Securities Exchange issues thought paper on crypto assets

Abu Dhabi Securities Exchange, ADX, has announced the issuance of a thought paper on infrastructure for crypto and distributed ledger environment, and financial market infrastructures.

The thought paper is issued in cooperation with the Central Securities Depositories and under the patronage of the International Securities Service Association, ISSA.

The Central Securities Depositories have a clear responsibility to investigate the crypto-asset phenomenon and see where they might be able to help the market develop a safe and efficient environment for issuers and investors.

ADX aims to identify the technical and operational criteria required to issue crypto-assets, as well as provide a reliable reference to support financial institutions in managing the transition of the issuance of traditional and crypto-assets.

Commenting on the announcement, Rashed Al Blooshi, Chief Executive of ADX, noted the importance the market plays as a member of ISSA Central Securities Depositories Working Group, which works on further developing the implementation of Distributed Ledger Technology based on blockchain, as well as its contribution in the development of the crypto-asset infrastructure study.

"ADX continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region," he added.

Al Blooshi pointed out the importance of upgrading financial market infrastructure and incorporating standards of governance within their systems to prevent market fragmentation, increase investor confidence and raise the quality of its infrastructure.

"Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets. At ADX, we embrace new and innovative technology and are always looking to capitalise on advancements in FinTech; particularly in crypto-assets to optimise the benefits we offer to our investors and stakeholders," he concluded.

The paper can be found and downloaded below.