UAE officially approved the ICO as ‘Securities’ in 2019
The United Arab Emirates (UAE) is promoting plans to introduce initial coin services (ICO) as a means of raising funds for companies and startups by 2019.
In an effort to promote finance in the capital markets, the UAE will allow domestic companies to raise capital by providing encrypted tokens to investors alongside traditional media such as first-time issuers. to the public (IPO).
Specifically, the ICO will be considered ‘securities’ by the regulatory authorities as required. Currently, they are being drafted and expected to be implemented in early 2019.
Speaking at the workshop, UAE director Omar Saif al-Zaabi said:
‘The Board of Directors of the Emirates Securities and Exchange (ESCA) has approved ICOs as securities. According to the plan, we will soon regulate this space in the first half of 2019. ‘
According to the information, the ESCA is currently drafting ICO regulations with top advisors. The regulator is working hard to work together with the Abu Dhabi and Dubai stock exchanges to develop platforms that are friendly to the encryption industry. Accordingly, strong support for the ICO.
Almost a year ago, Abu Dhabi, the largest UAE emirate, issued electronic money and ICO guidelines that defined them as ‘securities.’ While not classified as legal tender, electronic money is still considered to be the goods of the Abu Dhabi government.
The report shows that the combination of low oil prices and the labour market over the years has made the IPO severely affected. This has led domestic companies to step up their financing modalities in the wider UAE and the Gulf.
Authorities are taking measures to check the effectiveness of the new law. According to the record, this law allows family-owned businesses to sell a majority, even a 100% stake in their company with the IPO. If approved by the UAE prime minister, the new law will come into effect by 2019. Furthermore, the watchdog is also considering a minimum of 20% female membership in publicly listed companies, as a step Towards equality aside from encouraging female investors.
This is a good news for the UAE, congratulations as it has given UAE a growing future.
And more than ever, in some other countries like Vietnam or China, this is something they are looking forward to a lot.
Everyone will now say what price or wish … we are officially legalized for the ICO in our country, which shows that this is a powerful gift for the people who are expecting. Wait for the economy in general and the crypto world community in particular.
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