Bermuda and the Abu Dhabi Global Market (ADGM) collaborate to enhance the digital assets ecosystem.
The Financial Services Regulatory Authority (FSRA) of ADGM and the Bermuda Monetary Authority (BMA) have signed a Digital Assets Memorandum of Understanding (MoU). This agreement aims to bolster regulatory and supervisory cooperation between the two jurisdictions.
Framework for collaboration
The newly signed MoU establishes a robust framework for collaboration between the BMA and FSRA. This framework supports digital asset entities operating within Bermuda and Abu Dhabi. The cooperation will involve regulatory and supervisory efforts, investigative assistance, and capacity enhancement initiatives. This collaboration aims to streamline operations and create a more cohesive regulatory environment for digital assets.
ADGM has been at the forefront of digital asset regulation. One recent milestone includes the launch of the first regulated stablecoin in the UAE. Paxos International, a UAE-based affiliate of Paxos, introduced Lift Dollar (USDL), a yield-bearing stablecoin. The FSRA of ADGM regulates this stablecoin, ensuring compliance with UAE financial regulations. Lift Dollar (USDL) is now accessible to consumers in Argentina through distribution partners such as Ripio, Buenbit, Manteca, and Crypto.
ADGM has made significant strides in the Distributed Ledger Technology (DLT) sector. In March 2024, ADGM registered its second DLT Foundation, the Finschia DLT Foundation, chaired by Youngsu Ko. This registration follows the IOTA DLT Foundation’s recognition as the first foundation under the DLT Foundations Regulations in ADGM in November 2023.
Growth and Regulatory Efforts in Bermuda
The Bermuda Monetary Authority has also been active in the digital assets sector. Recently, BMA granted a license to the Coinbase crypto exchange, showcasing its commitment to fostering a robust digital assets market. Bermuda’s regulatory environment is designed to support the growth and development of digital asset entities, ensuring they operate within a secure and compliant framework.
The collaboration between ADGM and BMA through the MoU signifies a step towards a more integrated and supportive regulatory landscape. This partnership aims to enhance the capabilities of both jurisdictions in managing and regulating digital assets effectively.
ADGM and BMA’s efforts reflect a broader trend towards the growth of the digital assets sector. Earlier this year, ADGM published a survey highlighting significant growth in various sectors, including Fintech and digital assets. Blockchain and Distributed Ledger Technology are projected to grow by 17.08% and 16.83%, respectively. These figures underscore the increasing importance of digital assets in the global financial landscape.
The partnership between ADGM and BMA aims to leverage this growth potential, creating a more robust and secure environment for digital assets. By combining their regulatory expertise, both entities are well-positioned to support the evolution of digital assets and ensure their long-term viability.
The post Bermuda and ADGM Unite to Enhance Digital Assets Ecosystem first appeared on Coinfea.