United Arab Emirates, UAE is set to adopt regulations for Initial Coin Offerings in the country; this was as agreed by the financial regulatory authority of the state.
ICO Regulations In The United Arab Emirate
According to a recent report, the financial regulatory authority of the United Arab Emirate on the 11th September declared that tokens are to be regarded as security commodity in the country. This brings more legal structure to ICOs in the UAE.
As noted by the Sultan bin Saeed Al Mansouri, the Chairman of the UAE Securities and Commodities Authority [SCA] stated that the committee had approved plans to regulate Initial Coin Offering in the country to keep up with the changing financial times.
The New SCA’s plan for regulating ICOs would be through the adoption of the financial protocols from countries that are already successful in implementing cryptocurrency laws. Inclusive in this adoption will be an improvement of fintech industries in the seven countries of the UAE.
Meanwhile, before the news of regulatory framework for ICOs in the UAE, the SCA had warned investors to be cautious of digital assets. With further aspersion that ICOs are flimsy and fragile.
Notably, Abu Dhabi the capital of UAE and Dubai have both respectively adopted regulatory frameworks for cryptocurrency trading in their respective domains.
ICOs Around The Globe
Initial Coin Offering, ICO is a potent tool adopted by cryptocurrency startups for financing their projects. A token which is considered a share or tradable security is sold out to the public to raise necessary fund for the project. Equally, it helps to create awareness about a project and gives the public sense of belonging to a project.
ICO, as crucial as it is to the development of cryptocurrency, as also turned to be image tarnishing, caused by dubious individuals venturing into the field. The increasing rate of scams in ICOs has made many lose their investments and caused some countries such as China to ban ICOs and cryptocurrency related activities in their states completely.
Meanwhile, some countries have discovered that annexing the potency of cryptocurrency requires creating a conducive community for ICOs. This has been unleashed in Japan, South Korea and underway by countries in the European Union.
Notably, instrumental to the growth of cryptocurrency in the European Union as noted by the Vice-President of the European Commission, Valdis Dombrovskis, over 6 billion dollars has been raised in funding cryptocurrency based projects via ICOs in the EU in 2017 alone.