UAE equated NFT tokens with cryptocurrencies

The Abu Dhabi Global Market has developed new guidance on the regulation of non-fungible tokens

22.03.2022 - 09:00

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The Abu Dhabi Global Market has developed new guidance on the regulation of non-fungibletokens.

What’s new? The Abu Dhabi Global Market (ADGM), the UAE’s international financial hub, has published guidance on NFT regulation. According to the document, licensed companies will be able to trade and store non-fungible tokens under the rules for cryptocurrencies. The companies will have until May 20 to propose improvements and edits to the new project.

Guidance on NFT regulation

What do the government’s representatives say about the guidance? Simon O’Brien, executive director of the Financial Services Regulatory Authority (FSRA), said that for companies that comply with existing regulations, the changes will not be noticeable.

He also stated that licensed cryptocurrency companies will be able to establish an unregulated branch within the ADGM rules for NFTs trading. O’Brien clarified that the parent company will be responsible for all operations.

Emmanuel Givanakis, the UAE free zone’s CEO, claims that the Emirates will “gradually” regulate non-fungible tokens. He added:

“NFTs themselves are not financial instruments, they’re comparable to a piece of art. If there’s a derivative built around them, then yes, then they become a financial instrument.”

Earlier it was reported that the Binance exchange received a license to trade in Dubai and Bahrain, the same day FTX was granted permission to operate.

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