ABU DHABI STOCK EXCHANGE STUDIES TRANSITION TO CRYPTOACTIVE MANAGEMENT
The stock exchange seeks to be a reference before other institutions to give support in the future.
The stock market bets on cryptoactives to "offer benefits to investors".
The Abu Dhabi Stock Exchange (ADX) published a document on the necessary infrastructure for the management of cryptoactives, as a first step for the transition in the management of values oriented towards cryptocurrencies or tokens. The report was prepared to identify the technical aspects required to carry out this type of operations.
Local authorities aim to be a reference to other financial institutions to offer them support in the future. Rashed Al Blooshi, executive director of ADX, indicated that the current market infrastructure can play an important role in the adoption of new financial services based on cryptoactives, according to a press release issued by the state agency WAM.
The financial market infrastructure plays a fundamental role in supporting cryptomarkets, offering protection to investors and avoiding fragmentation. It enables financial institutions to provide advanced services in the field of cryptoactives. Rashed Al Blooshi - Executive Director, Abu Dhabi Stock Exchange
Al Blooshi asserted that the Abu Dhabi Stock Exchange "agrees with the technology to capitalize on the advances with cryptoactives", and thus "optimize the benefits offered to investors and stakeholders".
The document and its guidelines were sponsored by the International Securities Services Association (ISSA) and the Central Securities Depository (CSD). The purpose of the latter is, among others, to investigate cryptoactives in order to identify how the exchange market can be helped to develop a safe, efficient environment for issuers and investors.
ADOPTING TECHNOLOGY
The Abu Dhabi Stock Exchange's approach to cryptoactives and their associated technologies began in October 2016 when the organization announced the launch of a decentralized system for eVoting services. Two years ago it was reported that the system would facilitate investments in securities funds in the United Arab Emirates.
In April last year EDX included cryptoactive technology in its economic planning for 2030. At the time, Al Blooshi himself indicated that "the adoption of blockchain technology in our projects is in line with the digital transformation of Abu Dhabi's government services as we constantly strive to introduce new ways to facilitate the process of doing business within the Emirate".
It is important to note that in naming the technology blockchain, Al Blooshi referred to Distributed Accounting Technology (DLT), which is the principle that underpins Bitcoin and allows any type of encrypted transaction to be carried out between two or more people without intermediaries.
With the most recent announcement, the Abu Dhabi Stock Exchange once again recognizes the potential of cryptoactives as a form of investment and exchange between market participants.