UAE To Give Companies The Go-Ahead To Start Raising Funds Through ICOs Come 2019

New dawn to the way of running organizations and raising funds for its operation in UAE as the country is about to make things much easier. This would be aided through new regulations to be stipulated in the United Arab Emirates, UAE, that will enable the local companies to raise funds through Initial Coin Offerings, ICOs.
Mostly, ICO is related and adduced to crypto startups and firms as a means of raising funds, selling shares and raising awareness of a cryptocurrency or blockchain project. However, a twist to the tale is set to take place in the UAE as the country continues to lead in the cryptocurrency and blockchain sphere.
An enthusiastic expression was made by Obaid Saif al-Zaabi, head of the Emirates Securities and Commodities Authority (ESCA) while informing Reuters of the plans of the board for cryptocurrency and blockchain technologies in the country. Among others, Saif noted that approval had been made to start considering ICOs as securities in the country. This will be ushered in by a legal framework to regulate ICO activities in the country come 2019.
The change in the system and a change of operation will be brought to play with the regulatory framework to be introduced in 2019. This will be seen in a change from the traditional fundraising method, Initial Public Offerings IPOs to ICOs, that is mostly associated with cryptocurrency. This will be a change of trajectory of the form of selling shares by the local companies in the United Arab Emirates.
The procedure to bring the new law into fruition has seen it reach the first draft stage, while the ESCA has been making efforts to make the new law productive, through the partnership with the stock trading platforms in Abu Dhabi and Dubai.
Meanwhile, the absence of IPO activities in the country and its surrounding countries has been adduced to low oil prices and an unimpressive equities market. This has stimulated the introduction of ICOs in the country to replace IPO, to further the growth of companies and the local economy of the country.
Also, while ICOs will be enabled for firms, measures are also underway to aid IPOs in the country again. This will allow family owners to sell a 100% share of their firms.
UAE’s effort in introducing regulation for cryptocurrency in the country if fulfilled will bring the country to the same standard with Malta that has seen full introduction of regulations for its cryptocurrency and blockchain sector. This has made the country a haven for crypto startups.
A similar effort is ongoing in the European Union has the economic region is set to annex the dividends of cryptocurrency and blockchain industries more.

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