UAE ICO Rules Almost Set — ADN to Create Secure ICOs
UAE ICO rules are about to be finalized this year. Consequently, ADN is launching its innovations to answer security concerns regarding ICO investments.
In the first half of 2018, the cryptocurrency industry had lost more than $1.1 billion dollars due to the lack of governance. There is urgency in the industry to build up its security so that investors can be more confident in crypto. The UAE, the second-largest Arab economy, is set to join the top global financial markets as it aims to regulate crypto assets, with rules for initial coin offerings (ICOs) to be established by mid-2019.
To complement the upcoming rules, ADN is creating a blockchain-based platform that has a built-in investor-oriented mechanism programmed to protect the interests of the investors when they invest in cryptocurrency projects’ ICOs. The blockchain’s capability to provide a secure platform for ICO’s would help investors gain confidence in crypto.
UAE to Create Crypto-Exchange Rules in 2019
As mentioned above, the Abu Dhabi Global Market and Dubai International Financial Centre are both looking to implement crypto-exchange legislation by the end of 2019. Eterna Capital CEO Andrea Bonaceto said that “in many jurisdictions around the globe, we are seeing regulatory pressure on exchanges to tighten up their security.”
Havyn Co-Founder Christopher Flinos expressed a similar sentiment, saying that cryptocurrencies will inevitably be a regulated part of the world’s current financial system. “You can’t have an asset class of about $120 billion and just have it continually sitting outside the existing financial system,” Flinos said. “Nothing stimulates regulation more than seeing individuals lose a lot of money.”
He also believes that regulations are good because they protect users from theft, and they keep the exchanges from lying about what they have (and don’t have) because their audits are seen by the regulator. The risk that is involved with the lack of security in exchanges and wallets is what’s causing discomfort among investors.
Lack of Security Losing Investors
Krypti CIO David Schoenberger described the risks involved in cryptocurrency, saying that a good number of crypto-applications do not have the superior security to prevent hackers from stealing private keys and wallet addresses. On the side of the consumers, it is difficult to invest in or utilize when major hacking occurs almost daily. This fear has caused governments such as the UAE to regulate crypto assets and make rules for ICOs to follow. Without trust, these rules and regulations are quite imperative.
“Even before data gets recorded to the blockchain and distributed, hackers can steal the value; until security is fully in place, cryptocurrency will not mature beyond its speculative, Wild West reputation.”
- David Schoenberger, CIO of KryptiWallet
Despite the number of successful and honest ICOs, the crowdfunding method has been chastised by other communities as a tool to commit fraud. There are unfortunately many investors who ended up being victims to scammers who applied the pump-and-dump tactic.
Did you know?
Pump and dump (P&D) is a form of securities fraud wherein fraudsters would create a buzz around their ICO through marketing and make promises of future profit. Once they have made a profit out of the money shelled out by unsuspecting investors, they will cash out, thereby dumping the coin and leaving the investors to suffer tremendous financial losses.
Abu Dhabi-based Libra Project Assessment Management — not to be confused with Facebook’s Libra — CEO Hans Fraikin continued on the importance of investor comfort, saying that “the real risk” actually lies within the lack of security measures of some exchanges and wallet providers the cryptocurrencies are associated with, and that it is but necessary to make ICO investors feel comfortable with investing in these projects. The Securities and Commodities Authority, which oversees the markets, has approved ICOs as securities and will work with the Abu Dhabi Securities Exchange and DIFC to develop trading platforms for ICOs next year.
ADN: The Pedestal of Trust and Security
ADN is a pioneering blockchain platform that employs innovative methods for taking on the challenges within the blockchain networks. Not only will it be technologically advanced, but it will also be looking after the investors that are participating in the ICOs on the ADN platform.
We provide an economical solution to our users by allowing them to make faster, more affordable, and secure transactions with the ADN Payment Processing System. Users can benefit from minimal and transparent fees by using one of the most developed applications available on the market.
ADN will be the first to provide an investor protection mechanism designed to be fraud-proof, scam-proof, and laundering-proof. Our ADN Coin will be widely available to trade with other cryptocurrencies so as to allow anyone who wants to participate in ICOs held on its platform.
To help re-instill investor confidence, the ADN Main Network will become the pedestal of trust and security with its blockchain wallet. With the first-ever ICO Wallet, ADN intends to protect all investments of ICO participants and would only grant the ICO companies access to a specific amount of investments as allocated in each stage. All of the funds stored for other stages will remain inaccessible until the majority of investors have approved the project to move forward.
We are also launching our ADN Main Network soon to keep investors safe from becoming victims of ICO scams, frauds, and wallet thefts through our investor-protection mechanism. Regulations on ICOs is progress for the crypto-industry in the UAE, but until they are set, you can never be too careful when investing in an ICO.
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