While crypto markets have been in a slumber mood, a lot of focus is now moving towards BUIDL and bringing in real value to the crypto business. Understanding this a lot of regulators have also become active and are pushing forward their stance on cryptocurrencies, ICO’s and blockchains. The latest of those announcements are coming from UAE where the regulator has put forward that they would be coming up with a regulation for ICOs in Mid 2019
ICO’s our concern, Bitcoin, Ethereum and others are not our business says the regulator
According to the recent news coming in from the Middle East, UAE’s financial regulator the Securities and Commodities Authority is planning to introduce regulations for initial coin offering (ICO) in the country by the end of the first half of 2019. This move by the regulator is aimed at providing companies another avenue to raise capital through crowdfunding.
Although the regulator has clearly stated that these regulations will be pertaining only to the ICO’s as what happens to other cryptocurrencies is not their concern.
Obaid Al Zaabi, the SCA chief executive was quoted saying by the local media outlet The National,
“Bitcoin, Ethereum and others are not our business. We are more concerned about crypto issuance and how to bring them for trade [securities] on our exchanges,” he said.
The SCA, is the apex authority that supervises and monitors the markets and has approved ICOs as securities and will work with the Abu Dhabi Securities Exchange and Dubai Financial Market to develop trading platforms for ICOs next year.
“We have signed agreements with law firms to come up with the sandbox and rulebooks for the issuance of ICOs,” said Obaid Al Zaabi, the SCA chief executive.
A “regulatory sandbox” is a framework that facilitates the development of the financial technology industry. Bahrain, another country from the Middle East, has been successful in implementing a fintech sandbox
The news further states that The SCA will facilitate Abu Dhabi and Dubai stock markets with the adoption of the latest blockchain technology, using cryptography, for the issuance of ICOs. An implementation plan will be on the ground after agreements with ADX and DFM are finalized, Mr. Al Zaabi, said. “Our market is open. [ICO] registration and licensing are available for all kinds of companies, from across the world.”
Apart from ICO’s Mr. Al Zaabi sees blockchain as a factor that could add value to the UAE’s current systems and markets infrastructure.
“It will introduce added layers of security and efficiency. Especially the fast-changing local markets and volatile financial markets need international technologies like blockchain to increase transaction speeds and reduce overall costs.”
UAE regulator, being so affirmative in his approach, has not just laid out a solid plan on how he plans to regulate cryptos in UAE but also has given a roadmap to other nations to follow the same and accept the newest for money with both hands.
Will UAE be able to create a “Crypto Oasis” in the Middle East? Do let us know your views on the same