Nomuras Laser Digital to Offer Crypto Trading, Asset Management in Abu Dhabi

LaserDigital, a digital asset arm of global financial services group Nomura, hasreceived a Financial Services Permission (FSP) from the Financial ServicesRegulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The approvalmarks the completion of Laser Digital's licensing process with ADGM.

Nomura's Laser DigitalWins Abu Dhabi Regulatory Approval

The FSPallows Laser Digital to provide broker-dealer and asset management services forboth virtual assets and traditional assets within ADGM, Abu Dhabi'sinternational financial center and free zone. The company's UAE entity is ledby CEO Jez Mohideen, with Ramin Shayesteh serving as Head of Distribution.

"Weare eager to contribute responsibly to the virtual asset industry in theUAE," said Mohideen in a statement. "We have always been committed toupholding the highest standards of compliance and regulations at ADGM, and welook forward to contributing to ADGM's ecosystem."

LaserDigital, backed by the Japanese financial services giant Nomura, wasestablished in the second half of 2022in Switzerland, which is known for its crypto-friendly regulations. In thefollowing years, however, the company tooksteps to acquire licenses in other regions of the world, including the MiddleEast.

With theADGM approval, Laser Digital joins a growing list of digital asset firms, establishing a presence in Abu Dhabi as the UAE continues to position itself asa hub for the industry.

"We'redelighted to welcome Laser Digital as we expand our financial community toinclude partners such as Laser, whose offerings align with ADGM and the FSRA'sinternational best practices and progressive regulatory ecosystem," ArvindRamamurthy, Chief of Market Development at ADGM, commented, welcoming LaserDigital to the financial center's growing community.

LaserDigital is currently among the three companies aiming to introduce a newcryptocurrency product in Japan, specifically"Stablecoin-as-a-Service," and they are collaboratively working onthe issuance of JPY and USD stablecoins in Japan.

Meanwhile, Nomuras crypto subsidiary has strengthened its leadership by appointingHideaki Kudo as a Representative Director and the head of Laser's newlyestablished office in Tokyo.

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<p> The Dubai Financial Services Authority (<a href="https://www.financemagnates.com/tag/dfsa/">DFSA</a>) announced its initial list of 'Recognised Crypto Tokens' on Tuesday, changing its current regulatory regime concerning the crypto industry. The list includes <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_1" class="terms__main-term">Bitcoin</a> (BTC), Ethereum (ETH), and Litecoin (LTC).</p><p class="MsoNormal">The DFSA defines a <a href="https://www.financemagnates.com/cryptocurrency/" target="_blank">cryptocurrency</a> token as a token that is used as a medium of exchange or payment or provides a right in another asset that meets the requirements. However, the regulator does not consider non-fungible tokens, utility tokens, and central bank digital currencies (CBDCs) as potential crypto tokens.</p><p class="MsoNormal">As of November 1, only recognized crypto tokens can be transacted within or from the Dubai International Financial Center (<a href="https://www.financemagnates.com/tag/difc/">DIFC</a>). A similar scheme is used by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).</p><p class="MsoNormal">The DFSA began its foray into regulating the cryptocurrency sector by introducing investment tokens in September 2021. These differ from the currently recognized crypto assets and include security assets (i.e., shares, certificates, structured products) and derivative tokens (i.e., futures and options).</p><p class="MsoNormal">Dubai Wants To Become The New Crypto Hub</p><p class="MsoNormal">Dubai is taking more steps to become an international <a href="https://www.financemagnates.com/terms/h/hub/" target="_blank" id="70df8dbe-6564-4e03-8d97-dec68acfd2ce_2" class="terms__secondary-term">hub</a> to attract experts and cryptocurrency companies. Earlier this year, the Virtual Asset Law (VAL) was introduced, establishing the independent Dubai Virtual Assets Regulatory Authority (VARA) to further oversee local industry development.</p><p class="MsoNormal">A mix of low taxes and some of the lowest electricity costs in the world make <a href="https://www.financemagnates.com/cryptocurrency/why-crypto-miners-flock-to-dubai-despite-the-hot-weather/" target="_blank">Dubai a popular spot for cryptocurrency mining</a>. Miners are not even bothered by high temperatures, which in this part of the world can exceed 42°C in summer.</p><p class="MsoNormal">On the other hand, the high temperatures and ample sunshine make it possible to exploit the potential of renewable energy. It is in Dubai that the largest solar power plant is located. Moreover, the UAE believes that by 2024, 20% of its electric power will be from renewable sources.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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UAE’s Free Zone Regulator Outlines Its Five ‘Guiding Principles’

<p>The Financial Services Regulatory Authority (FSRA), the market supervisor of the United Arab Emirates’ (UAE) Abu Dhabi Global Markets, has outlined five ‘guiding principles’ that will inform its regulatory efforts.</p><p>The ADGM is one of the international financial centres and free trade zones in the UAE.</p><p>According to <a href="https://www.financemagnates.com/tag/fsra/" target="_blank">the FSRA</a>, the principles are anchored on ensuring that ADGM's regulatory frameworks are internationally recognized, market-orientated, risk-focused, accommodates regional and global cooperation, and delivers high standards of quality and service. </p><p>FSRA outlined and explained the rationale behind these principles in <a href="https://www.adgm.com/financial-services-regulatory-authority/guiding-principles" target="_blank" rel="nofollow">an undated post</a> published on the official website of the ADGM.</p><p>The First Two Principles</p><p>The first principle seeks to bring international recognition to ADGM's regulatory framework.</p><p>FSRA explained that “<a href="https://www.financemagnates.com/tag/adgm/" target="_blank">ADGM</a> will draw on best standards and practices from international financial services centres around the world.”</p><p>Under this principle, the free trade zone will also confirm to international standards in Anti-Money Laundering and Countering the Financing of Terrorism. </p><p>At the same time, the free zone will also enshrine regulatory confidentiality except in cases where the disclosure of corporate information is required by other regulators, public authorities or the court.</p><p>The second principle seeks to make the free trade zone's rules and regulations dynamic and market-orientated.</p><p> FRSA explained that ADGM’s regulatory framework will be principles-based and outcome-focused, proportional and progressive, responsive and proactive to industry changes and needs, as well as creates space for regular dialogue with the industry. </p><p>“ADGM’s legislative framework will be based on <a href="https://www.financemagnates.com/cryptocurrency/education-centre/is-cryptocurrency-legal-in-the-uk/" target="_blank">English Common Law</a>, enabling the courts to draw on a well-established set of precedents and responding effectively to changing global market conditions," FSRA said.</p><p>“This will also empower ADGM to offer its member institutions the same level of sophistication, certainty and flexibility in its legal and regulatory regime as practised in other international financial jurisdictions," it added.</p><p>The Other Three Principles</p><p>Under the third principle, ADGM is to adopt a “prudential regulation approach” to see to the Abu Dhabi free trade zone's financial stability and business friendliness.</p><p>Furthermore, FSRA under this principle also wants to achieve consolidated supervision of financial institutions in the Abu Dhabi free zone, help reduce impact of business failure, and safeguard the best interest of consumers, among other goals.</p><p>Meanwhile, through the fourth principle, FSRA seeks to achieve cooperation and shared responsibility in its regulation of the ADGM.</p><p>The regulatory authority explained that it will achieve this through partnership with the global regulatory community, collaboration with market participants, and recognition of local nuances and laws.</p><p>“Further to keep with international standards, ADGM’s legislative framework and regulations will reflect the local characteristics of the UAE and the wider Middle East region," FSRA explained.</p><p>“Specifically, ADGM will also provide the platform for comprehensive offering of Islamic finance services to meet the growing demand and needs of this industry," the market supervisor added.</p><p>Additionally, the fifth principle seeks to achieve high standards of quality and service through a dedicated regulatory team with strong industry knowledge as well as uphold the highest standards of integrity.</p><p>“The Regulatory Authority [FSRA] is committed to nurturing its regulatory workforce and will dedicate adequate resources to enhance the level of competency, professionalism and ethical standards among its staff,” FSRA explained.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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