Crypto Orders for Financial Free Zone set in Abu Dhabi

Abu Dhabi’s regulator for international financial center and free zone has set framework that will include spot crypto services, custodians and intermediaries
28 June 2018   492

In order to make the marketplace for cryptocurrency firms secure, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) - the country capital’s international financial center and free zone - has instituted its ‘crypto asset regulatory framework’ for firms working in the zone. As declared in the ADGM statement, the start follows a public consultation, with local and global respondents that were finished by ‘several refinements’ of the framework before its release.

The FSRA has addressed issues around consumer protection, safe custody, technology governance, disclosure/transparency, Market Abuse and the regulation of Crypto Asset Exchanges in a manner similar to the regulatory approach taken in relation to securities exchanges globally.
Excerpt from the Regulations

In the whole, the FSRA has ranked cryptocurrencies, or “crypto assets” as commodities. Security tokens published will be subject to relevant regulatory requirements while ‘utility tokens’ will also be estimated as commodities. Any off-shoot funds, derivatives or tokens will be regulated as ‘Specified Investments’ under the Financial Services and Markets Regulations.

We are encouraged by the significant global and regional interest from exchanges, custodians, intermediaries and other institutions to our crypto spot regulatory framework. Globally, responsible crypto asset players are seeking a regulatory regime upholding high standards that foster market confidence…Our engagement with fellow global regulators also validated our position that the key risks highlighted have to be addressed for crypto assets to be more widely accepted and institutionalised.
Richard Teng
FSRA of ADGM Chief 

In accordance to the new regulations, operators looking to institute a new exchange will be demanded to pay an initial authorization fee of $125,000 and an annual fee of $60,000. Crypto custodians like wallet companies will have to cough up $20,000 initially and $15,000 per year.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   96

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.