This decision of the United Arab Emirates (UAE) follows the decisions of the US and Europe. Europe will consider ICOs as a token by going via ICOs case-by-case. However, the regulations will be set up by the end of 2018. In a seminar CEO of National Securities watchdog, Obaid Saif al-Zaabi says,
The board of the Emirates Securities & Commodities Authority has approved considering ICOs as securities. As per our plan, we should have regulations on the ground in the first half of 2019.
Further, confirming, Emirates Securities & Commodities Authority (ESCA) is working international advisers to draft the regulations. The ESCA is also working with the Dubai and Abu Dhabi stock markets. Moreover, to develop trading platforms and details for the same will update later.
IPOs have been in the dumps for the last few years in UAE and the Gulf Arab region. This is due to low oil prices and weak equity markets. A new law in the early or mid-2019 will allow family owners to sell a percent or 100 percent of the company to facilitate IPOs.
Confirming the news Zaabi says,
The Ministry of Economy has written to the prime minister’s office and we are awaiting approval.
Also, mentioning a separate initiative that will require the listed companies to have 20 percent women on their boards.
Dubai & UAE on the Forefront of Blockchain Innovation
Like all technological innovations, Blockchain has received a good attention in UAE. Even the government is actively participating in adopting and spreading this innovation.
Recently under the Smart Dubai office, a payment and reconciliation system came into existence. This system makes use of the blockchain technology to provide safe transfer of funds to all the departments in the blockchain network of the system. This system develops in conjunction with the Dubai Department of Finance and more departments of government are to join the same.
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