ADGM Updates Digital Asset Rules; New Criteria & Investments

- ADGM's FSRA updates its digital asset regulations. - New acceptance criteria, revised requirements, and expanded investment options introduced. On June 11, 2025, CoinDesk reported that the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has implemented immediate amendments to its digital asset framework. The changes stem from extensive industry consultation, encapsulated in Consultation Paper No. 11 of 2024. Key revisions address several areas, including updates to the acceptance criteria for virtual assets within ADGM. The revisions also adjust capital requirements and fees for firms dealing in the virtual asset space and expand permissible investments for venture capital funds. Moreover, the updated framework introduces a product intervention power for the FSRA concerning virtual assets, while also maintaining the prohibition of privacy tokens and algorithmic stablecoins within ADGM. The FSRA also revised its guidance on the regulation of virtual asset activities, reflecting these amendments and offering more clarity to firms operating within ADGM. Emmanuel Givanakis, CEO of ADGM's FSRA, stated that these enhancements aim to deliver regulatory certainty for industry participants and address emerging risks in the digital asset ecosystem. This initiative reaffirms ADGM's position as a leading jurisdiction for digital asset-related activities and demonstrates its commitment to responsible innovation in financial services. According to CoinMarketCap on June 19, 2025, prominent cryptocurrencies reflected market reactions. For instance, Bitcoin (BTC) was trading at $47,500, with a 1.8% increase in 24-hour trading volume, while Ethereum (ETH) was trading at $3,220, with a 2.5% increase in 24-hour trading volume.