UAE ADGM Updates Digital Asset Framework with Stricter Virtual Asset Regulations

The Abu Dhabi Global Market (ADGM) has implemented significant amendments to its digital asset regulatory framework following industry consultations. The revised rules introduce stricter controls on VIRTUAL asset acceptance, capital requirements, and fees for authorized firms operating in the sector.

Key changes include explicit prohibitions on privacy tokens and algorithmic stablecoins within the ADGM jurisdiction. The regulatory body has also established a clearer definition of virtual assets, distinguishing them from fiat currency, e-money, and traditional financial instruments.

Market participants must now comply with updated capital requirements and face new product intervention powers granted to regulators. These developments signal ADGM''s commitment to creating a structured yet flexible environment for digital asset innovation while maintaining robust oversight.