ADGM FSRA Unveils Key Enhancements To Digital Assets Framework At Abu Dhabi Finance Week 2025

The Financial Services Regulatory Authority (FSRA) of ADGM has introduced major updates to its digital asset regulatory framework. These changes were unveiled at the ninth Fintech Abu Dhabi event during Abu Dhabi Finance Week. The updates aim to strengthen ADGM’s global leadership in digital asset regulation and innovation.

Since 2018, ADGM has been a pioneer in digital asset regulation, being among the first globally to establish a comprehensive framework for Virtual Assets (VAs). Currently, over 20 regulated firms operate within ADGM's ecosystem. These firms engage in activities involving VAs or Fiat-Referenced Tokens (FRTs), including roles such as broker-dealers, custodians, exchanges, asset managers, and FRT issuers.

The FSRA has made several significant modifications to its VA framework after extensive industry consultations. These include refining the process for accepting VAs as Accepted Virtual Assets (AVAs) within ADGM. Other notable changes involve adjustments to capital requirements and fees for VA firms, introducing specific product intervention powers for VAs, and expanding investment opportunities for Venture Capital Funds.

In September 2025, recognising the increasing significance of staking activities in the digital assets ecosystem, the FSRA proposed a regulatory framework for VA staking. This proposal outlines which categories of Authorised Persons can conduct staking activities using their Clients’ VAs. Feedback from this consultation is currently under review.

Building on its December 2024 framework for FRT issuance, the FSRA finalised amendments in October 2025 detailing its approach to accepting FRTs within ADGM. Effective from 1st January 2026, these rules broaden the scope of Regulated Activities that can be conducted using FRTs. They also address emerging FRT business models while applying risk-based and proportionate requirements for Authorised Persons.

Emmanuel Givanakis, CEO of the FSRA of ADGM, stated: "The FSRA continues to enhance its digital asset regulatory framework to remain forward-looking and responsive to the next wave of financial innovation, including tokenisation, DeFi and AI-driven market participation. Our approach balances innovation with strong governance, risk-based supervision, and alignment with global standards. We are committed to enabling digital asset firms to scale within a well-regulated international financial centre that prioritises transparency, resilience, and long-term stability."

These updates represent a crucial step in evolving the FSRA’s digital assets framework. They ensure that ADGM remains at the forefront of regulating digital assets while supporting innovation and maintaining robust governance standards.

With inputs from WAM