MENA Fintech Association Releases Bi-Annual Regulatory Update on ADGM's Evolving Digital Asset Framework

Editorial Calendar MENA Fintech Association Releases Bi-Annual Regulatory Update on ADGM’s Evolving Digital Asset Framework The report follows MFTA’s Policy & Regulations Working Group participation in theFSRA Bi-Annual Regulatory Update Session held on 19 May 2026, led by members of the FSRA Policy & Legal team, Lawrence Paramasivam and Margaret Devaney. The session was moderated by Christine Assali, Co-Chair of the MFTA Policy & Regulations Working Group, and brought together approximately 20 representatives from MFTA member firms across the fintech and digital assets ecosystem. The report provides an overview of how ADGM’s digital asset ecosystem has evolved from a predominantly institutional market focused on custody and price exposure into a broader and increasingly sophisticated financial ecosystem.

It highlights developments across tokenised assets, structured products, staking, lending and borrowing, and the growing infrastructure supporting regulated digital asset businesses. A key area highlighted in the report is the expansion of the virtual asset ecosystem within ADGM. Regulated entities are now engaging with a broader universe of virtual assets, while the development of independent custodians, brokerage venues, staking providers, security assessors, compliance providers, and transaction monitoring solutions is helping reduce barriers to entry and supporting more sophisticated operating models.

The report also examines the FSRA’s evolving regulatory frameworks aroundfiat-referenced tokens (FRTs), including the accepted FRT framework and the distinction between virtual assets and payment instruments. It further covers developments relating to staking activities, custody, financial crime controls, technology risk, market integrity, and the FSRA’s supervisory approach. Beyond digital assets, the update provides insights into a number of emerging regulatory themes, includingAI in regulated entities, tokenisation and TradFi convergence, cross-border regulatory coordination and harmonisation, and the potential implications of quantum computing for financial services.

The report reflects MFTA’s continued focus on creating practical channels for regulatory dialogue between policymakers, regulators, financial institutions, fintechs, and