ABU DHABI, Abu Dhabi Securities Exchange, ADX, has issued a paper titled ‘Crypto Assets: Moving from theory to practice’.

The paper was prepared in cooperation with global Central Securities Depositories, asset managers and custodians, and under the patronage of the International Securities Service Association, ISSA, in which ADX is an active member, said a press release issued by ADX on Saturday.

The paper talks about the best practices and provides recommendations for developing platforms in the Crypto Asset space. It also outlines recommendations and best practice considerations in relation to issuance, settlement, safekeeping, asset servicing and regulation of Crypto Assets.

Focusing on inter-operability, the paper suggests that the securities industry can fully benefit from solutions based on Distributed Ledger Technology, DLT.

Each dedicated chapter addresses the fundamentals of the opportunity, the challenges to delivery as well as potential solutions to issues in a way that is easily accessible to interested parties.

The publication comes as ADX makes a transition from conventional assets to more encrypted assets, which the Exchange is spearheading for the region. Further the paper comes at an opportune time and follows on from the issuing of Crypto-Assets regulations draft by the Security Commodity Authority, which will provide a clear framework for regional digital assets.

The regulations and the paper will combine well together as they both intend to serve Crypto-Assets directly.

Khalifa Salem Al Mansouri, Chief Executive of ADX, said, “At ADX, we have focused on the trustworthiness, safety and efficiency of crypto-asset markets as a priority area, to give the UAE a head start in the race for this rapidly developing area of FinTech and accelerate the growth of more institutional investment.

In order to create a robust framework to attract investment, ADX has worked to ensure high levels of corporate governance and we are delighted to be recognised by ISSA as such in this paper.”

Al Mansouri continued, “ADX put in place robust business and technical standards to protect its investors and took advantage of these proven records to actively contribute to the content development of the paper.

This included an analysis of ADX’s regulations and responsibilities, concluding that new forms of governance as well as operations for distributed networks are required,” he concluded.

Source: Emirates News Agency