ADGM opens consultation on DeFi risk management guidance for regulated firms

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has published Consultation Paper No. 5 of 2026, inviting industry feedback on proposed DeFi Risk Management Guidance. The Guidance applies to ADGM-regulated firms that engage in or are exposed to DeFi activities and sets out the FSRA's expectations regarding governance, risk management frameworks, operational resilience, and compliance obligations specific to DeFi. Key areas covered include: risk identification and assessment (smart contract risk, liquidity risk, counterparty risk, technology risk); governance and oversight with clear roles and responsibilities at board and senior management levels; operational resilience with adequate systems, controls, and business continuity arrangements; compliance and reporting obligations; and third-party management with appropriate due diligence on service providers and DeFi platforms. The consultation period allows industry stakeholders to provide feedback on the scope, proportionality, and practicality of the proposed requirements before finalization.