Government agencies across the globe are closely monitoring the events taking place in the blockchain and cryptocurrency industry. On Tuesday, November 6th, Abu Dhabi Securities Exchange (ADX) presented a thought paper on blockchain and cryptocurrency.
Media outlet, Emirates News Agency, also reports that the reflective paper talks about the state of blockchain and cryptocurrency infrastructure to issue digital tokens. The ADX collaborated with the Central Securities Depositories (CSD) in this thoughtful paper while also receiving support from the International Securities Service Association, ISSA.
Roles Performed by the CSD and ADX Securities Exchange
The task of the CSD is to investigate the crypto-asset phenomenon and surrounding events. Furthermore, it also looks after creating a safe and secure environment for investors in the cryptocurrency market.
On the other hand, the ADX looks after handling all the operational and technical aspects of the crypto-assets. Moreover, it works in tandem with other financial institutions for the issuance of crypto-assets and related products. As a result, ADX plays a supporting role in cryptocurrency companies in this thriving industry.
ADX Chief Executive, Rashed Al Blooshi, appreciated the efforts of ISSA Central Securities Depositories Working Group. This group works towards the strong implementation of Distributed Ledger Technology (DLT). It also looks after the infrastructure requirements for the safe and secure functioning of crypto-assets.
Al Blooshi added, “ADX continues its efforts to manage the transition from conventional assets to more encrypted assets, which are witnessing major and rapid development in the region.”
Importance of Financial Market Infrastructure
The ADX Chief Executive also explained the need and necessity to upgrade the financial market infrastructure. He noted the need to bring new governance standards within the existing system to enhance investor confidence while preventing market fragmentation.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets. At ADX, we embrace new and innovative technology and are always looking to capitalize on advancements in FinTech, particularly in crypto-assets to optimize the benefits we offer to our investors and stakeholders,” he concluded.
So far, the UAE has maintained a pro-crypto and pro-blockchain stand. Under the Smart Dubai initiative, the country is promoting several blockchain-related projects thereby creating a friendly and conducive environment.
Last month, the UAE national securities regulator charted out regulatory plans to bring ICOs for capital markets next year.
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