Abu Dhabi has announced the creation of a government body dedicated to developing its strategy for regulating and promoting virtual assets.
The Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC) held its inaugural meeting in late August, chaired by Mohamed Ali Al Shorafa, who is also the chairman of the Abu Dhabi Department of Economic Development and the Securities and Commodities Authority (SCA).
The committee aims to establish a regulatory framework for virtual and blockchain assets that aligns with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, fostering “an ecosystem that is safe, sound, and transparent.”
Additionally, ADBVAC will work towards enhancing Abu Dhabi’s竞争力 in the blockchain and virtual assets sector, facilitating information exchange, and establishing best practices for stakeholders.
The committee will include executives from Abu Dhabi Global Market, the SCA, state wealth funds ADQ and Mubadala, the Abu Dhabi Investment Office, and the professional services firm Mazars.
“The committee is uniting all relevant stakeholders to create a robust, credible, and comprehensive regulatory and business ecosystem that addresses key risks and major governance issues, such as AML/CFT, investor protection, tech governance, and custody risk, to promote blockchain and virtual assets,” stated Al Shorafa.
The ADBVAC’s launch follows the establishment of the Dubai Virtual Asset Regulatory Authority five months prior and comes in the wake of the UAE being placed on a watchlist by the Financial Action Task Force (FATF) due to money laundering concerns.