Abu Dhabi pioneers DLT regulation for DAOs, Web3 innovations

Abu Dhabi, the second most populous city in the United Arab Emirates, has introduced a formal regulatory framework for decentralized autonomous organizations (DAOs) and other digital ledger entities, as it doubles down on its ambitions to become a leader in digital asset creation. middle east.

The new framework allows DAOs to legally operate and issue tokens to members, providing regulatory transparency for digital asset organizations. Abu Dhabi is looking to become a crypto hub alongside Dubai, and this move is part of a larger push to develop initiatives in the broader blockchain and digital asset realm.

Distributed ledger technology (DLT), which is the basis for blockchain networks, is a system of recording and storing data on different ledgers in the network to ensure data integrity and security.

Abu Dhabi Global Market (ADGM) has taken a forward-looking approach in introducing the DLT Foundation system through extensive consultation with industry stakeholders. Beyond establishing global standards, this framework is set to revolutionize the blockchain sector by enhancing efficiency and transparency, according to the statement.

Ahmad Jassim Al Zabi, Chairman of ADMM, highlighted Abu Dhabi's rapid transformation into a hub for digital asset creators and underlined his commitment to nurturing an ecosystem that fosters technological growth.

ADM's efforts will elevate Abu Dhabi's reputation as a forward-looking legal authority and provide significant benefits to the wider Web3 community. By promoting improved governance and recognizing the decentralization principles of this sector, Abu Dhabi will set a precedent for international financial centers.

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Abu Dhabi is actively vying to position itself as a cryptocurrency hub, aligning with Dubai's efforts to embrace the digital assets sector. The regulatory framework in Abu Dhabi provides an important alternative for companies looking for clear and reliable regulations that can be differentiated from regulations in other parts of the world.

As previously reported by Cointelegraph, there was recently an economic free zone dedicated to digital and virtual asset service providers with technologies such as metaverse, blockchain, utility tokens, virtual asset wallets, imperishable tokens, DAOs, decentralized applications and other Web3-related businesses. Graduated in Dubai.

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