This newly implemented legislative structure is designed to provide a "comprehensive framework for DLT Foundations and Decentralised Autonomous Organisations (DAOs), enabling them to operate and issue tokens recognising the unique needs of the Blockchain industry." 

The Notice covers:

• Characteristics of virtual currencies
• The use of virtual currencies for money launder and terrorism financing
• Money laundering and virtual currencies - domestic perspective
• Red flag indicators
• Key recommendations for financial institutions and the private sector
• Case studies.

Key proposals for the Regulations cover: the structure of the DLT Foundations; governance and control; tokens; reporting, disclosures and publication; beneficial ownership; supervision; insolvency and liquidation / voluntary strike off.

Deadline for comments is 12 May 2023.

With regard to virtual assets, ADGM is launching its transition to Virtual Assets Framework 2.0., heralding a new stage for the asset class. Proposed changes include:

• requirements on the use, sharing and reuse of public keys;
• amendments to the risk disclosure requirements; and
• allowing regulated MTF/Custodian groups within ADGM to conduct non-fungible token (NFT) activities.

Deadline for comments on the consultation is 20 May 2022.

The enhanced regulatory framework aims to support the continued development of 'private capital markets', which are becoming more accessible with the advent of innovative financial technology such as digital assets and tokenised securities.