On 9 September 2025, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) released Consultation Paper No. 9 of 2025, seeking feedback on proposed amendments to the regulatory framework for Fiat-Referenced Tokens (FRTs) (including stablecoins). Comments are invited until 7 October 2025.
Who Will Be Affected
The proposals are significant for crypto-asset exchanges, custodians, payment service providers, broker-dealers, asset managers, FRT issuers and fintech intermediaries operating in or targeting ADGM and wider UAE markets. They will also interest compliance, legal and risk professionals evaluating licensing and operational impacts.
Key Proposed Changes
- Accepted FRT List – ADGM-issued FRTs will be automatically accepted. Foreign FRTs must meet criteria on reserves, AML/traceability, regulatory standards and commercial utility.
- Expanded Regulated Activities – The activity of Providing Custody will expressly cover FRTs. Payment service providers using FRTs will require specific authorisation and must meet safekeeping, technology and resolution-planning standards.
- New FRT Intermediation Activity – A dedicated Category 4 regulated activity for firms buying and selling FRTs as a standalone business, with conduct rules and a US $50,000 base capital requirement.
- Safekeeping & Use of FRTs – Safe Custody Rules will extend to broker-dealers and asset managers holding client FRTs. Only Accepted FRTs may be received as payment for services.
- Issuer Requirements – Streamlined notification for certain approvals and a ban on Dirham-denominated FRT issuance by ADGM-licensed firms.
These measures aim to give regulatory clarity and stronger consumer protection, while aligning with international standards for stablecoins and related digital-asset activities.
How Al Tamimi Can Help
Our Banking & Finance team advises on ADGM digital-asset regulation and licensing. We can assist with:
- Assessing the impact of the proposed FRT regime on your operations and structuring plans.
- Preparing and submitting consultation responses ahead of the 7 October 2025 deadline.
- Designing compliant custody, payment or intermediation structures and updating policies, contracts and controls for the final rules.
For tailored guidance, contact our team.
Key Contacts
Jody Waugh, Managing Partner, j.waugh@tamimi.com
Mark Brown, Partner, Head of Projects, m.brown@tamimi.com
Ashish Banga, Senior Associate - Consultant, a.banga@tamimi.com