ADGM proposes new rules for fiat-referenced tokens: ADGM’s Financial Services Regulatory Authority (FSRA) launched a new consultation paper (pdf) proposing a regulatory framework to govern activities involving fiat-referenced tokens (FRTs) — a type of stablecoin pegged to fiat currency. The consultation is open for feedback until Tuesday, 7 October.

Acceptance criteria: The FSRA would maintain a list of accepted FRTs, automatically approving those issued in ADGM and assessing foreign FRTs against reserve adequacy, compliance with the correct FRT definition, anti-money laundering traceability, and regulatory oversight in the issuer’s home jurisdiction. It is also proposing to include CBUAE-approved, AED-denominated stablecoins in the accepted FRT list.

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REMEMBER- ADGM has so far accepted one domestic FRT, Paxos Lift USD (USDL), in addition to foreign-issued stablecoins USDC, USDP, and USDT. In December, FSRA introduced a framework for FRT issuance, defining the tokens and their use as payment instruments.

Expanded scope: The new rules would bring FRT activities into scope for those providing custody and payment services. They also introduce a new, regulated category; FRT intermediation. FRT custodians would fall under safe custody rules, while payment providers using FRTs for transactions would need to secure a payment service provider (PSP) license. Fiat intermediaries — which buy and sell FRTs as a business but aren’t PSPs — with a USD 50k base capital requirement would be regulated under Category 4 requirements.

IN OTHER REGULATION NEWS-

GPSSA extends payment window for merging service periods: The General Pension and Social Security Authority (GPSSA) will now give insured individuals up to 10 years — instead of four — to pay for merging service periods, effective this month, state news agency Wam reports. The rollout will happen in two phases, with active requests addressed first and new applications accepted from November.

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