UAE To Enact Laws For ICO Funding
The laws put UAE on the global map for countries that have existing laws in the crypto sector.
UAE Corporate Sector To Source Funds From ICOs
Authorities in the United Arab Emirates are set to unveil new regulations targeting ICOs. The rules will enable ICOs to be used as fundraising methods for local firms.
Reports indicate that the new laws will be rolled out next year. Firms will have an opportunity to raise funds by selling tokens as an alternative to the traditional methods. Firms will no longer be constrained to platforms like IPO alone.
The announcement was made by the country’s boss of securities regulation body Saif al-Zaabi. Speaking during a seminar, Zaabi said that the new law had been approved by the Emirates Securities and Commodities Authority.
The regulator had teamed up with advisers to draft the laws. The advisers were drawn from different parts of the world. Zaabi added that authorities are also in the process of teaming up with Abu Dhabi and Dubai stoke markets in preparation for the ICO roll out.
A report by Reuters shows that low prices in the oil industry and non-performing equity markets recently have combined to hamper the IPO activity in UAE in addition to neighbouring countries.
With the new ICO regulations, the country is expected to come up with laws that increase the number of IPOs by approving 100% sell out by family owners or companies under the regulator's jurisdiction. At the moment, the law is ready awaiting the approval by the prime minister.
The rollout of the laws will be a major boost for UAE. The country will have positioned itself as one of the global leaders in terms of having laws in place for blockchain funding methods.
Malta is the most recent country to have passed a number laws geared towards offering directions in the ICO and crypto sector. The laws passed early this year are part of the country’s plan to become a blockchain island. Speaking during the recently concluded UN general assembly, the country’s Prime Minister said that in the near future, cryptocurrencies are poised to take over from traditional money.
Bermuda is also on the list of countries gearing up towards becoming ICO leaders. The country plans to attract investments by providing a legal framework for ICOs. Currently, we have a task force that seeks to find ways of boosting the cryptocurrency sector.