The Abu Dhabi Securities Exchange (ADX) has said that it is planning to develop the necessary infrastructure that will enable it to support Cryptocurrency-based transactions. The exchange is optimistic that having the right infrastructure in place will be of major benefit to the financial institutions trying to adopt the innovation. Recently, UAE has been involved in various Crypto related activities in an attempt to become a leader in the sector.
Abu Dhabi To Consider Upgrading ADX’s Infrastructures
As many securities around the world remain undecided on how to respond to the emergence of blockchain technology and Cryptocurrency, the Abu Dhabi Securities Exchange (ADX) has taken a leading role. The exchange has said that it is planning to improve its infrastructure to accommodate startups and institutions that are getting into the Crypto sector. The current exchange lacks the necessary infrastructure to allow for the functioning of Crypto-related firms alongside the existing companies.
ADX has been working closely with the country’s Central Securities Depository on this project to upgrade its market infrastructure. The organization is said to be involved in the creation of an environment that will support the growth of the Crypto sector while at the same time protecting the interests of the investors. Despite the potential of blockchain and Cryptocurrencies in enhancing efficiency in various industries, there is always that risk that the investors face that authorities are trying to address.
The United Arab Emirates is currently working on ways in which it will develop the new asset class. WAM, a state-run news outlet in the country reported that the exchange has been looking at the operational and technical requirements to support Cryptocurrency trade in the region. ADX is hopeful that after the completion of this project, it will act as a reference for the other financial institutions trying to incorporate the Crypto sector.
Market Upgrade To Enhance The Adoption Of Cryptoassets
According to Rashed Al Blooshi, ADX’s chief executive upgrading the current exchange’s financial infrastructure is of utmost importance. He added that this upgrade should also consider the comprehensive standards of governance. He said that such incorporation would go a long way in boosting investor confidence, prevent market fragmentation, and help in improving the overall quality of the entire infrastructure.
Al Blooshi noted that the new infrastructure will make possible and easy for financial institutions dealing with the Cryptoassets to operate. He added that ADX wants to continue playing a leading role in the financial sector by embracing the new technology. With regard to the Cryptocurrencies, the senior officer said they are trying to maximize on the benefit that this promising technology provides to both the investors and stakeholders.
Cryptocurrency Activities In The UAE
Recently, UAE has been actively involved with virtual currencies and related technologies and products. At the beginning of this year, the Abu Dhabi Global Market announced the introduction of a regulatory framework to facilitate Cryptocurrency activities provided by trading and custodial websites. A few months ago, it became possible to have initial coin offerings (ICOs) in the country after the adoption of the necessary regulations by the UAE Securities and Commodities Authority. The country now has a locally registered Cryptocurrency exchange on its list.