The Abu Dhabi Blockchain and Virtual Assets Committee (ADBVAC) has held its inaugural meeting to regulate blockchain innovations and virtual assets. Mohammed Ali Al Shorafa, the Chairman of the Abu Dhabi Department of Economic Development (ADDED) and Chairman of the Securities and Commodities Authority (SCA), chaired the meeting.
During the meeting, emphasis was laid on the need to set up regulatory mechanisms for blockchain and virtual assets. The Committee agreed that the mechanisms must be in place to ensure that there must be compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT).
The committee added that the compliance must fall within local and international regulations. Further emphasis stressed creating a secure, transparent, and trustworthy environment for blockchain and virtual assets activities. Additionally, the committee agreed that abiding by this model will help attract more investors into the blockchain and digital assets sector of Abu Dhabi.
However, the committee aims to enhance competitiveness in the Abu Dhabi blockchain and digital assets sector. The ADBVAC is also tasked with supporting the activities of firms and individuals in the industry. This will help investors work with regulators to adhere to international regulatory standards. The committee prioritizes that firms meet the AML/CFT stipulations and back the exchange of relevant data to aid this compliance.
During the meeting, the chairman of ADDED and SCA, Mohammed Ali Al Shorafa, echoed this priority. According to him, the committee’s establishment summarizes the visionary and innovative minds of the administrators of Abu Dhabi.
The Chairman opined that the approach had aided the region in building an enabling business atmosphere. Mohamed Ali Al Shorafa believes that such a posture is manifested by creating a synergy to foster numerous opportunities for investors.
Furthermore, Mohamed Ali Al Shorafa heaped praises on the committee’s formation. He describes them as a gathering of prominent and relevant stakeholders. He believes the committee would proffer a good, credible, and detailed regulatory framework. According to the chairman, the regulations by the committee will help tackle key risks and prominent governance problems. He listed these issues as AML/CFT compliance, investor protection, technology governance, custody risk, etc.
Lastly, the chairman added that the regulation would help the sector achieve the dreams and targets of Abu Dhabi. He said the relevant areas of attention would be AgriTech, FinTech, Healthcare, Biopharma, Energy, Tourism, and ICT.