Although the bears ruled the crypto markets in 2018, the persistent survival of the crypto market shows that it is here to stay. The rampant cryptocurrency market has left many tongues wagging with regulators still striving to catch up with it. On 17th March 2019, Abu Dhabi Global Market (ADGM), UBF, and UAE Banks Federation hosted a joint forum.
The forum primarily focused on FinTech and crypto assets. Industry specialists converged in Abu Dhabi to discuss how these compelling trends are constantly shaping the global financial services sector. They also talked about the challenges and opportunities that the new technologies present. UBF Compliance Committee and ADGM coordinated this event.
Several topics were discussed such as ADGM’s regulations and supervisory approach to digital and crypto assets. They also deliberated on harnessing RegTech, for example, big data and machine learning that can improve the surveillance and management of financial transactions. Furthermore, the experts tried to find ways on how banks and financial regulators can cooperate. The cooperation will create processes to solve regulatory risks while serving market participants operating crypto assets businesses.
The financial services industry is going through a rapid transformation due to the innovation of various technologies. Some of these new technologies include cryptos and several other digital assets. The fast-evolving market dynamics mean that financial institutions, banks, and financial regulators have an integral role to play to thoroughly monitor and keep ahead of these developments.
The Meeting Agendas
The financial institutions and regulators must also ensure that financial services continue to operate in a major and trusted way in an ever-evolving digital environment. The Chairman of UAE Banks Federation, AbdulAziz Al-Ghurair, believes that UBF is a strong advocate of the innovation that is constantly disrupting the UAE financial services industry.
Al-Ghurair strongly believes in the importance of cooperation to facilitate the transformation in the financial sector while guaranteeing that it takes place successfully and seamlessly. He added that it is important to develop reliable infrastructure and regulations. These regulations will govern the new FinTech, cryptocurrencies, and crypto assets developments effectively.
The Chairman of UAE Banks Federation said that they must keep up with the technological changes taking place in the finance world to become a major international hub of the sector. For a robust monetary and financial market environment to thrive, consumer rights protection and market safeguarding integrity is crucial.
Additionally, the CEO of the Financial Services Regulatory Authority of ADGM, Richard Teng, expressed his gratitude. He was excited by the partnership with UBF in the forum. The event created an opportunity to discuss the overview and challenges presenting by the evolving dynamics of the banking sector.
The attendees agreed that the collaboration between financial institutions and regulatory authorities can create commitment and trust. these characteristics are necessary for the launch of FinTech activities safely into the financial services industry. ADGM shared its policy framework, key features, and objectives highlighting its crypto asset regulatory fundamental strategy.
This regulatory framework ranks as the world’s first comprehensive framework launched in June last year. The regulations were launched for all operators of crypto asset businesses including custodians, exchanges, and brokers. Several countries including the UK have started to implement various changes in the financial sector trying to regulate digital assets.
All stakeholders agree that surveillance tools in the market are essential. They mitigate risks of financial crimes in the rampant cryptocurrency market transactions. The Chairperson of UBF Compliance Committee who heads the Regulatory Compliance at First Abu Dhabi Bank concluded the session. He said that cooperation among all stakeholders must exist for the nascent market to thrive.