Why Choose ADGM for Your FinTech and Digital Assets Business
At Maldbury & Co, we recognize Abu Dhabi as the top FinTech hub in the MENA region, led by the innovative Abu Dhabi Global Market (ADGM). ADGM has achieved several firsts, including the first FinTech Regulatory regime and the first FinTech RegLab, now the world’s second most active FinTech sandbox after London.
Key Points about ADGM:
- Promoting Innovation and Safety: ADGM supports technological innovation in financial services while ensuring safety and consumer protection.
- Strategic Location: Abu Dhabi is a global crossroads between Europe and Asia, making it ideal for connecting markets and fostering partnerships.
- Collaborative Environment: ADGM works with regulators and private sector entities to build a vibrant FinTech ecosystem.
- Opportunities for FinTech Companies:
- Established FinTech firms find a supportive business environment and access to underserved markets.
- Startups can join the ADGM RegLab, which offers a controlled space to develop new solutions safely and cost-effectively.
- Hub71 Partnership:
- ADGM partners with Hub71, a tech ecosystem initiative with over a billion dirhams invested.
- Key partners include Mubadala Investment Company, Microsoft, and SoftBank Vision Fund.
- Hub71 combines capital providers, business enablers, and strategic partners to drive tech innovation.
- Regulatory Requirements:
- Financial services entities must meet resource requirements set by ADGM.
- Controlled Functions require FSRA approval, while Recognised Functions are appointed by the entity.
Setting Up Financial Services Entities in ADGM:
Financial services entities looking to establish themselves in ADGM must secure approval from the ADGM Financial Services Regulatory Authority (FSRA) before proceeding with registration.
Application Process:
- Form Submission: Applicants must fill out the required forms and provide all necessary information.
- Assessment: The FSRA Authorisation Team assesses whether applicants meet the admission requirements, including:
- Operational, financial, and regulatory track record of the entity and shareholders.
- Fitness and propriety of senior management and key appointment holders.
- Resources, systems, and controls of the entity to ensure proper corporate governance and compliance with all applicable rules and regulations.
- Expedited Processing: A thoroughly and accurately completed application will expedite this process.
Steps for Setting Up:
- Contact Us: Call or meet with an FSRA Authorisation Team member for an initial discussion. Applicants should have a regulatory plan outlining planned activities, internal controls, and resources.
- Submit Form: Submit the completed application form and required documentation along with the application fee.
- Interviews: The Authorisation Team reviews the application, conducts interviews with key personnel, and follows up on any clarifications.
- Notification: Applicants will be notified if their application is approved in principle, subject to conditions.
- Acceptance: If the applicant accepts the approval conditions, they must prepare to meet these conditions and proceed with capitalization, hiring, and contacting the ADGM Registration Authority for the Commercial Licence application.
- Permission: Once the conditions are met, ADGM will issue the applicant’s Financial Services Permission.
Investors and Top Talent Heading to UAE
“The UAE is also carving a niche as one of the next high-growth crypto capitals of the world, with institutional investors, hedge funds, and financial behemoths moving in. Standard Chartered Bank, Franklin Templeton, and Mastercard are moving or expanding their latest digital assets services, assets, and headcount in the country.
The family office of Ray Dalio, founder of the world’s largest hedge fund Bridgewater, and quant investing giant AQR Capital Management are setting up shop in Abu Dhabi. Brevan Howard is doubling its headcount in the capital from 60 people to 120. These aren’t simply votes of confidence; they are strategic plays by three prominent institutional investors .
Ninety minutes up the motorway from the UAE capital, 40 funds have registered in Dubai as of July 2023, a third of which arrived in the preceding 12 months, primarily from London and New York” The National News – UAE Carving a Niche as High-Growth Crypto Capital
Why Set Up Your Digital Assets Business in ADGM?
- Supportive Ecosystem: ADGM fosters a thriving environment for digital asset businesses, including financial institutions, investors, and developers.
- Progressive Regulation: ADGM’s risk-based approach welcomes innovation and supports business growth.
- Global Network: ADGM connects businesses to a global network of financial regulators and FinTech hubs, helping them expand internationally.
Digital Asset Activities Regulated by ADGM:
- Virtual Assets
- Digital Securities
- Derivatives and Funds
ADGM offers a comprehensive regulatory framework for virtual asset activities, including trading facilities, brokers, custodians, and asset managers. This framework ensures a business-friendly environment while addressing market abuse, financial crime, and investor protection.
ADGM’s Financial Services Regulatory Authority (FSRA) is the first to regulate platforms for Virtual Asset trading as Multilateral Trading Facilities. This includes strict requirements for market surveillance, transaction monitoring, and transparency, promoting proper governance and transparency in the virtual asset market
For personalized guidance through the ADGM process, contact Maldbury & Co at www.maldbury.com or email hello@maldbury.com Our experts will assist you in navigating every step of the way.