Abu Dhabi Global Market permits NFT trading

The Middle East is quickly becoming a global hotspot for blockchain and crypto development with nations introducing crypto legislation to validate authorized institutions and exchanges. Thie subsequent licensing is being seen as a much-needed welcome change by the global crypto community for promoting the industry. Keeping in line, the Abu Dhabi Global Market(ADGM) announced a crypto framework for regulations and legislation while allowing authorized exchanges to conduct transactions in crypto NFTS.

Abu Dhabi Global Market: An Evolution in NFT Trades

Once enforced, the proposed regulatory framework will allow licensed trading platforms or crypto exchanges to offer trading services for multiple digital assets including non-fungible tokens(NFTS) with the free trade zone jurisdiction. 

A consultation paper published by the Emirati Free Trade Zone titled “Proposals for enhancements to capital markets and virtual assets in ADGM” states: 

“The FSRA recognizes the growing relevance of NFT markets within the wider markets for digital assets. NFTs, being akin to intellectual property rights over unique creations, may not themselves constitute Specified Investments or Financial Instruments. While the FSRA is not proposing to establish a formal regulatory framework for NFTs at this point in time, the FSRA is open to NFT activities.” 

Also Read: Decentralization in marketplaces crucial for NFTs: Raj Chowdhury

Further ADGM Updates

Crypto trade service providers authorized by ADGM must adhere to AML(Anti-Money Laundering) laws for facilitating NFT trade. Both regulated and unregulated activities in NFT translation require compliance with ADGM’s AML rules for sanctions and prevention of laundering. Businesses may need to register as a Designated NonFinancial Business or Profession(DNFBP) with the FSRA. 

Also Read: HashCash Chief Optimistic on Rising Humanitarian Use of DAO and NFTs

Wrapping Up

The recent regulations in Abu Dhabi have been positive for the crypto ecosystem. Along with its underlying blockchain technologies. The capital city had accepted blockchain incorporation for land registries, a pioneering move in the Middle East in October 2019. The decision to allow NFT trading in crypto exchanges is progressive. Especially, as the ADGM continues to present itself as a thought leader, both regionally and globally.