ADGM Strengthens Digital Asset Regulatory Framework with Key Amendments 

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has implemented significant amendments to its digital asset regulatory framework, effective immediately. These changes follow extensive industry engagement and feedback on ADGM FSRA Consultation Paper No. 11 of 2024. 

The amendments, formally cited as the Financial Services and Markets (Amendment No. 1) Regulations 2025, introduce key updates relating to the treatment and regulation of Virtual Assets (VAs) within ADGM. These include a revised process for recognizing Accepted Virtual Assets (AVAs), updated capital requirements and fees applicable to VA firms, and the introduction of a specific product intervention power in relation to virtual assets. 

The FSRA has also formalized its position prohibiting the use of privacy tokens and algorithmic stablecoins within ADGM. In addition, the amendments clarify the scope of investment activities permissible under ADGM regulations. 

The FSRA has updated its guidance titled Regulation of Virtual Asset Activities in ADGM to reflect these amendments and to assist firms in interpreting and applying the revised AVA assessment criteria. 

Emmanuel Givanakis, Chief Executive Officer of ADGM’s FSRA, noted that these updates reinforce ADGM’s commitment to fostering responsible innovation while enhancing regulatory clarity and managing the evolving risks in the digital asset space.