ADGM’s FSRA Doubles Down on Digital Asset Rules and AML Reforms in 2024 - Report

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has released its 2024 Annual Report, outlining a year of robust regulatory progress, digital asset innovation, and increased international alignment.

As the financial regulator of ADGM—Abu Dhabi’s international financial centre—the FSRA emphasized its strengthened regulatory framework, commitment to combating financial crime, and enhanced support for innovation-driven finance.

Key Regulatory Milestones in 2024

One of the most notable developments in 2024 was the FSRA’s launch of a dedicated regulatory regime for fiat-referenced tokens (FRTs)—a category of stablecoins. The new framework introduces clear standards for reserve quality, governance structures, and redemption rights, formally classifying FRT issuance as a regulated activity. This move reinforces ADGM’s position as a global leader in responsible digital asset regulation.

In parallel, the FSRA advanced its alignment with the Basel Committee’s Core Principles for Effective Banking Supervision, implementing proposed enhancements to its banking supervisory framework. Additionally, the authority rolled out a comprehensive ADGM-wide whistleblowing framework to promote transparency and market integrity.

UAE’s Exit from FATF Grey List

A major national milestone in 2024 was the UAE’s removal from the Financial Action Task Force (FATF) grey list. The FSRA played a critical role in this achievement by working alongside other UAE authorities to strengthen Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) controls and offering technical input throughout the process.

Continued Growth and Talent Development

ADGM’s financial services sector experienced record growth in 2024, with a 30% increase in FSRA-licensed firms, reaching a total of 272 entities—the highest annual rise on record.

The FSRA also deepened its investment in human capital, highlighting the Al Yah Programme for UAE Nationals, which integrates technical training, soft skills, and mentoring to build the next generation of Emirati financial professionals.

Looking Ahead: Innovation and Sustainability

The FSRA reaffirmed its focus on innovation, sustainable finance, and regulatory agility for the coming years. Emmanuel Givanakis, CEO of the FSRA, noted:

“As we reflect on the key achievements of 2024, it is clear that the FSRA has made significant strides in enhancing the environment for financial services to thrive in ADGM. This is driven by our commitment to innovation and progressive regulation, whilst maintaining market integrity and investor protection.”

He added that the FSRA remains committed to collaboration and forward-looking regulation to position Abu Dhabi and the UAE as a leading global financial hub.