Entrepreneurs and investors need to understand the fundamentals of virtual assets and manage the risks taken while investing in this new asset class and incorporating virtual assets in their respective portfolios. Moreover, the need for education and familiarization with the process of transacting in cryptocurrencies is important, in order to ensure private keys are safeguarded and wallet addresses are represented correctly during transactions. Moreover, the security of the platforms being used to transact in cryptocurrencies needs to be accounted for, in order to minimize the threat of hacking attempts and other cyber-attacks from external parties.
Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)