Abu Dhabi International Market introduces the rules of the general DLT foundations

The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The regulatory framework for the global financial free zone is “purpose-built” and the first of its kind, the agency said.

The Distributed Ledger Technology (DLT) Foundation Guidelines provide work on blockchain foundations, Web3 components, decentralized autonomous organizations (DAOs), and traditional foundations extending to DLT. Blockchain Foundations provide funding and other forms of support for blockchain without direct involvement.

The rules allow for the creation of a “DLT Foundation” by providing a signed charter that includes a description of the foundation's initial assets and governance and token issuance details (if any) with a link to the organization's white paper, tokennomics paper, and link. to a technical document called DLT Framework.

ADGM welcomes Al Rim Island businesses to the community #WamNews https://t.co/NoLasneinS

— WAM English (@WAMNEWS_ENG) November 1, 2023

Foundations are required to disclose the names of key figures, which will not be made public. It should also have a name ending in “DLT Foundation”. It is required to have a council of two to 16 members for administrative and administrative matters. A foundation is not permitted to carry out activities authorized by the ADGM Financial Services Regulatory Authority. Its token holders are considered users.

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The rules were posted on October 2 and announced on November 1. Initial enrollment application fees will total $50,000.

English law will apply in the ADGM opened in 2015. In 2018, he introduced regulations on cryptocurrency. The new regulations are part of ADGM's ongoing strategy to raise its profile in the blockchain and digital assets sphere. ADGM Chairman Ahmed Jassim Al Zabi in a statement sent by email:

“We are moving forward into the future, changing the blockchain and web3 landscape, setting global standards with improved transparency and efficiency.”

In February, ADGM resident Hub71 created a $2 billion project called Hub71+ Digital Assets to spur Web3 growth. First Abu Dhabi Bank also participated in that initiative. Abu Dhabi and ADGM are home to many other crypto service providers and foundations.

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