ABU DHABI GLOBAL MARKET INTRODUCES COMPREHENSIVE DLT FOUNDATIONS REGULATIONS

Last updated: June 19, 2025, 21:18 | Written by: Katie Haun

The Abu Dhabi Global Market (ADGM), a leading international financial free zone, has once again solidified its position as a pioneer in the digital asset space with the official release of the Distributed Ledger Technology (DLT) Foundations Regulations 2025.Announced by the Registration Authority (RA) of ADGM, these groundbreaking regulations represent a significant milestone, not only for the region but also for the global evolution of digital asset regulatory frameworks. The Abu Dhabi Global Market free financial zone has introduced regulations governing distributed ledger technology foundations that are the first of their kind. Please click here if you are not redirected within a few seconds.This comprehensive framework is purpose-built to address the unique legal and operational requirements of blockchain foundations, Decentralized Autonomous Organizations (DAOs), and the broader Web3 ecosystem.ADGM’s move underscores its commitment to fostering innovation and attracting cutting-edge businesses in the blockchain and digital asset realm. A DLT Foundation can establish subsidiaries both within the Abu Dhabi Global Market (ADGM) and in other jurisdictions. These subsidiaries may engage in commercial and regulated activities, provided they align with the DLT Foundation's objectives, are lawful, and obtain the necessary licenses from the relevant regulatory authorities.These regulations aim to provide clarity, security, and a robust legal foundation for organizations operating in this rapidly evolving landscape, creating a trusted environment for growth and development.With a focus on governance, transparency, and compliance, ADGM is setting a new standard for regulating the future of finance and technology. The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The international financial free zone s regulatory framework is Abu Dhabi Global Market introduces comprehensive DLT Foundations RegulationsThis innovative regime will undoubtedly attract further investment and talent to the region, cementing Abu Dhabi’s place as a global hub for digital innovation.

Understanding the DLT Foundations Regulations 2025

The DLT Foundations Regulations 2025 are designed to provide a clear and comprehensive legal framework for DLT Foundations operating within the ADGM.These regulations are specifically tailored to address the unique characteristics and challenges associated with blockchain-based organizations and Web3 entities.

Key Features of the Regulations

Purpose-Built Framework: The regulations are designed from the ground up to cater to the specific needs of DLT Foundations, DAOs, and other Web3 organizations.
Comprehensive Coverage: The framework covers various aspects of DLT Foundation operations, including governance, compliance, and financial requirements.
International Standards: The regulations align with international best practices and aim to provide a secure and transparent environment for digital asset activities.
Focus on Innovation: The regulations are designed to encourage innovation and growth within the blockchain and digital asset space.

Who is Affected by the New Regulations?

The DLT Foundations Regulations primarily affect organizations that are established as, or intend to operate as, DLT Foundations within the ADGM. ABU DHABI, UAE, Nov. 2, 2025 /PRNewswire/ - The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) officially released the Distributed Ledger Technology (DLT) Foundations RegulationsThis includes:

Blockchain foundations
Decentralized Autonomous Organizations (DAOs)
Other Web3 entities utilizing DLT

Furthermore, any subsidiaries established by these foundations, whether within the ADGM or in other jurisdictions, will also be subject to these regulations to the extent that their activities are governed by the DLT Foundation's objectives.

Financial Requirements and Initial Assets

One of the crucial aspects of the DLT Foundations Regulations is the requirement for initial assets.The foundation charter must specify that the DLT foundations will possess initial assets with a minimum initial asset value of USD 50,000. On, the Abu Dhabi Global Market (ADGM), Abu Dhabi s financial free zone, enacted its Distributed Ledger Technology (DLT) Foundations Regulations 2025, following a consultationThis amount must be paid within six months of receiving the registration certificate.

Rationale Behind the Requirement

This financial requirement serves several key purposes:

Ensuring Financial Stability: It provides a buffer for the DLT Foundation's initial operations and helps ensure its financial stability.
Demonstrating Commitment: It demonstrates a serious commitment by the founders and stakeholders to the long-term viability of the foundation.
Enhancing Credibility: It enhances the credibility of the DLT Foundation and builds trust with stakeholders, including users, investors, and regulators.

Governance and Foundation Charter

The regulations place a strong emphasis on governance and require each DLT foundation to have a comprehensive charter. The Abu Dhabi International Market (ADGM) Registration Authority has launched complete laws governing Web3 organizations. The worldwide monetary free zone s NewsAccording to Section 24 of the ADGM DLT Foundations Regulations 2025, the charter must include key provisions regarding DLT governance, including:

Governance Structure: Details on the governing bodies of the DLT foundation.
Appointment Rules: Clear rules on the appointment of members to the governing bodies.
Removal Rules: Procedures for the removal of members from the governing bodies.
Quorum for Decision-Making: Requirements for the quorum needed to make decisions.

Importance of a Robust Charter

A well-defined charter is essential for the effective operation of a DLT Foundation. The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) officially released the Distributed Ledger Technology (DLT) Foundations Regulations 2025, marking a significant milestone in the evolution of digital assets regulatory frameworks across the region and at an international level.It provides a clear framework for decision-making, accountability, and transparency.A robust charter helps to:

Prevent Conflicts: Minimize the risk of internal conflicts and disputes.
Ensure Accountability: Hold governing bodies accountable for their actions.
Promote Transparency: Provide stakeholders with clear information about the foundation's operations.
Maintain Compliance: Ensure compliance with regulatory requirements.

Exemptions Under Section 11(2)

While the regulations are comprehensive, they also recognize the need for flexibility. Exemptions may apply under Section 11(2) of the ADGM DLT Foundations Regulations 2025. The Abu Dhabi World Market (ADGM) Registration Authority has launched complete laws governing Web3 organizations. The worldwide monetary free zone s Crypto News TodayThe specific criteria for these exemptions are determined on a case-by-case basis, taking into account the unique circumstances of each DLT Foundation.

Factors Considered for Exemptions

The Registration Authority may consider various factors when evaluating exemption requests, such as:

The nature of the DLT Foundation's activities.
The level of risk associated with its operations.
The extent to which the foundation is subject to other regulatory oversight.
The foundation's governance structure and internal controls.

It is important for DLT Foundations seeking exemptions to provide a detailed rationale and supporting documentation to the Registration Authority.

Establishing Subsidiaries

A DLT Foundation can establish subsidiaries both within the Abu Dhabi Global Market (ADGM) and in other jurisdictions. The Regulations require each DLT foundation to have a charter, which, pursuant to Section 24, must include key provisions regarding DLT governance, including: governance and the governing bodies of the DLT foundation, rules on their appointment, and rules on removal and quorum for decision-making;This allows the foundation to expand its operations and engage in a wider range of activities.

Conditions for Establishing Subsidiaries

However, there are certain conditions that must be met:

Alignment with Objectives: The subsidiaries' activities must align with the DLT Foundation's overall objectives.
Lawfulness: The activities must be lawful in the jurisdiction where the subsidiary is established.
Necessary Licenses: The subsidiaries must obtain all necessary licenses from the relevant regulatory authorities.

This ensures that the DLT Foundation's subsidiaries operate in a responsible and compliant manner.

The ADGM as a Hub for Crypto Activity

The introduction of the DLT Foundations Regulations further cements the Abu Dhabi Global Market (ADGM) as a leading hub for crypto activity. The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) officially released the Distributed Ledger Technology (DLT) Foundations Regulations 2025, marking a significant milestone in theThe free financial zone has already attracted a significant number of blockchain and digital asset companies due to its progressive regulatory environment and supportive ecosystem.

Advantages of Operating in the ADGM

Companies operating in the ADGM benefit from:

A clear and comprehensive regulatory framework.
A supportive ecosystem of service providers and investors.
Access to a global network of partners and clients.
A strategic location at the crossroads of East and West.

The ADGM's commitment to innovation and its proactive approach to regulation make it an attractive destination for blockchain and digital asset companies seeking to establish a presence in the region.

Impact on the Broader Blockchain and Web3 Ecosystem

The DLT Foundations Regulations are expected to have a significant positive impact on the broader blockchain and Web3 ecosystem. The Abu Dhabi International Market (ADGM) Registration Authority has launched complete laws governing Web3 organizations. The worldwide monetary free zone s Abu Dhabi Global Market introduces comprehensive DLT Foundations Regulations - The Blockchain PageBy providing a clear and comprehensive legal framework, the regulations will:

Attract More Investment: The clarity and certainty provided by the regulations will attract more investment into the blockchain and Web3 space.
Encourage Innovation: The regulations will foster innovation by providing a supportive environment for new and emerging technologies.
Enhance Confidence: The regulations will enhance confidence among users, investors, and regulators, leading to greater adoption of blockchain and Web3 technologies.
Promote Compliance: The regulations will promote compliance with international standards and best practices.

What are the Benefits of Registering as a DLT Foundation in ADGM?

Registering as a DLT Foundation within ADGM offers a multitude of benefits.Here are some key advantages:

Legal Certainty: Operates within a well-defined and purpose-built regulatory framework specifically designed for DLT and Web3 organizations.
Reputational Advantage: Gains credibility by being regulated by a reputable international financial center.
Access to Capital: Improved access to funding and investment opportunities due to regulatory compliance and transparency.
Global Recognition: ADGM is a globally recognized financial hub, enhancing the foundation's international standing.
Tax Efficiency: Benefits from ADGM's favorable tax regime.
Innovation Hub: Access to a thriving ecosystem of blockchain and Web3 innovators.

How to Register as a DLT Foundation in ADGM: A Step-by-Step Guide

While the exact procedures can vary, here's a general outline of the steps involved in registering as a DLT Foundation in ADGM:

Preparation of Foundation Charter: Draft a comprehensive charter that complies with Section 24 of the DLT Foundations Regulations 2025, outlining governance, decision-making processes, and operational objectives.
Meeting Initial Asset Requirements: Ensure that the foundation possesses the required initial assets of USD 50,000, ready to be paid within six months of registration.
Application Submission: Submit a formal application to the ADGM Registration Authority (RA), including all necessary documentation, such as the foundation charter, details of governing bodies, and proof of initial assets.
Due Diligence and Review: The RA will conduct due diligence on the application and the individuals involved.
Compliance Checks: Ensure compliance with all relevant ADGM regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements.
Registration Approval: Upon successful completion of the review process, the RA will issue a registration certificate.
Post-Registration Compliance: Maintain ongoing compliance with ADGM regulations, including reporting requirements and governance standards.

Potential Challenges and Considerations

While the DLT Foundations Regulations offer numerous benefits, organizations should also be aware of potential challenges and considerations:

Complexity of Regulations: Navigating the regulatory framework can be complex, requiring expert legal and compliance advice.
Ongoing Compliance Costs: Maintaining ongoing compliance can be costly, requiring dedicated resources and expertise.
Evolving Regulatory Landscape: The regulatory landscape for blockchain and Web3 technologies is constantly evolving, requiring organizations to stay informed and adapt to changes.
Operational Challenges: Establishing and operating a DLT Foundation can present unique operational challenges, such as managing decentralized governance and ensuring network security.

Expert Opinions and Industry Insights

Industry experts have praised the ADGM's DLT Foundations Regulations for their clarity, comprehensiveness, and focus on innovation. The new regime has been introduced in line with the Global Market s strategy to foster initiatives in the broader blockchain and digital asset realm. It is an innovative, purpose-built regime that addresses the unique legal requirements of Blockchain Foundations, Decentralised Autonomous Organisations and the broader crypto industry.Many believe that these regulations will set a new standard for regulating the blockchain and Web3 space globally.Some key takeaways from expert opinions include:

Clarity and Certainty: The regulations provide much-needed clarity and certainty for organizations operating in the blockchain and Web3 space.
Innovation-Friendly Approach: The regulations strike a good balance between promoting innovation and ensuring regulatory compliance.
Global Leadership: The ADGM is positioning itself as a global leader in regulating the blockchain and Web3 space.

The Future of DLT Regulations in ADGM

The ADGM is committed to continuously evolving its regulatory framework to keep pace with the rapid advancements in blockchain and Web3 technologies. The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The international financial free zone s regulatory framework is purpose-built and the first of its kind, the agency claimed.The Distributed Ledger Technology (DLT) FounThe future of DLT regulations in ADGM is likely to include:

Further Refinements: The regulations may be further refined based on feedback from industry stakeholders and lessons learned from implementation.
Expansion of Scope: The scope of the regulations may be expanded to cover new and emerging technologies, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
International Collaboration: The ADGM may collaborate with other jurisdictions to harmonize regulatory standards and promote cross-border innovation.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about the ADGM DLT Foundations Regulations:

What is a DLT Foundation?

A DLT Foundation is an organization established to promote and support the development, adoption, and governance of distributed ledger technologies (DLT) and Web3 ecosystems.It operates with a specific purpose outlined in its charter and is often involved in activities such as research, education, community building, and grant funding.

What is the Minimum Initial Asset Value Required for a DLT Foundation?

The minimum initial asset value required for a DLT Foundation under the ADGM regulations is USD 50,000, to be paid within six months of receiving the registration certificate.

Can a DLT Foundation Establish Subsidiaries?

Yes, a DLT Foundation can establish subsidiaries both within the ADGM and in other jurisdictions, provided that the subsidiaries' activities align with the foundation's objectives, are lawful, and obtain the necessary licenses.

Are There Any Exemptions to the DLT Foundations Regulations?

Yes, exemptions may apply under Section 11(2) of the ADGM DLT Foundations Regulations 2025. The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The international financial free zone s regulatory framework is purpose-built and the first of its kind, the agency claimed. The Distributed Ledger Technology (DLT) Foundations Regulations will provide for the operation of blockchain foundations, Web3The specific criteria for these exemptions are determined on a case-by-case basis.

How Does the ADGM Support Blockchain and Web3 Innovation?

The ADGM supports blockchain and Web3 innovation by providing a clear and comprehensive regulatory framework, a supportive ecosystem of service providers and investors, and a strategic location at the crossroads of East and West.

Conclusion: A New Era for DLT Foundations in Abu Dhabi

The introduction of the Abu Dhabi Global Market's (ADGM) comprehensive DLT Foundations Regulations marks a pivotal moment for the blockchain and Web3 ecosystem.By providing a clear, purpose-built, and innovative regulatory framework, the ADGM is not only attracting investment and fostering innovation but also setting a new global standard for regulating digital assets. The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The international financial free zone s regulatory framework is purpose-built and the first of its kind, the agency claimed. The Distributed Ledger Technology (DLT) Foundations Regulations willThe regulations address key aspects of DLT Foundation operations, including governance, financial requirements, and compliance, ensuring a secure and transparent environment. The Abu Dhabi Global Market (ADGM) Registration Authority has introduced comprehensive regulations governing Web3 organizations. The international financial free zone s regulatory framework is purpose-built and the first of its kind, the agency claimed.With its strategic location, supportive ecosystem, and forward-thinking approach, the ADGM is poised to become a leading hub for blockchain and Web3 activity, driving the future of finance and technology.For organizations looking to establish a presence in this dynamic space, the ADGM offers a compelling opportunity to operate within a well-regulated and innovation-friendly environment.As the ADGM continues to refine and expand its regulatory framework, it will undoubtedly play a crucial role in shaping the future of the blockchain and Web3 landscape.Consider exploring the ADGM's official website for detailed information and resources on establishing a DLT Foundation and becoming a part of this exciting ecosystem.