Regulator Abu Dhabi: Institutional investors will bring to the cryptocurrency stability
The head of Service of financial— budgetary supervision of Abu Dhabi (FSRA) Richard Teng, addressing the participants of the conference on financial technology, said that the need to make further efforts to develop legislation that will reduce the extent of fraud in the cryptocurrency markets.
In particular, the Minister said:
The sector needs proper resolution, otherwise we are faced with the threat of financial crime. Whenever coins are stolen or lost, the credibility of this asset class is undermined.
In the past year, the organization Abu Dhabi Global Market (ADGM) has published a document addressed to potential investors in which are described the risks of investing in the young and unregulated industry.
The document also clarifies which category of virtual currency. According to him, the token-ICO in accordance with the current rules constitute a “special investment”. On the other hand, the cryptocurrency, not acquired through the ICO will be classified as goods.
In an interview he gave in the course of the event, Teng said:
We are confident that we have developed the legislation with which we are acquainted of regulators around the world, including the Commission on securities and stock exchanges of the USA, the British Treasury, Office of financial regulation and supervision in the UK, the Bank of England, regulators in Singapore, Hong Kong and Japan, can provide an adequate response to the threats and increase the level of confidence in this asset class.
Recently, the chief financial regulator of the UAE, the Office of securities and commodities, approved a plan for the settlement of the ICO that it relates to categories of securities.
Teng also noted how important it is to create a safe investment environment for institutions:
When institutional investors will enter the market, you will see how prices will become less volatile. But this will happen only if you help them with protection against possible threats.