On Tuesday, 11th September, the UAE state report revealed that the financial regulatory authority of the United Arab Emirates has gone ahead and agreed on a plan to bring in crowdfunding through Initial Coin Offerings [ICOs] with a directive to recognize tokens as security commodities.
Sultan bin Saeed Al Mansouri, the Chairman of the UAE Securities and Commodities Authority [SCA] stated:
“The committee has decided to approve the plan to regulate Initial Coin Offerings in the countries to keep up with the changing financial times.”
Sultan bin Saeed Al Mansouri also plays the role in the Ministry of Economy of the United Arab Emirates. The SCA has stated that their main priority is to adopt the financial protocols from countries that are successful in implementing cryptocurrencies and get a few takeaways from them. The body has also gone ahead and revealed that there are further plans to improve the fintech industries within the seven countries in the UAE.
This latest report by the SCA comes directly after the body had stated that investors need to proceed with caution when it comes to digital assets. This warning was also followed up by the SCA by stating that Initial Coin Offerings are fragile and flimsy and users should not place all their trust in it.
Abu Dhabi, the capital of the UAE have their own financial watchdog called the Financial Services Regulatory Authority [FSRA]. The FSRA was the first financial regulator in the UAE to bring about any circulars related to cryptocurrencies and interconnected digital assets. Dubai has also followed in Abu Dhabi’s steps by introducing a model called “proprietary trading in crypto-commodities”, which was put forth by the famous Dubai Multi Commodities Centre [DMCC].
The acceptance of cryptocurrencies such as Bitcoin [BTC] has been on a significant rise with even global superpowers like the United States en route adoption. Just recently, Brian Armstrong, the CEO of Coinbase had given his views on digital assets, calling it a “regulated industry.” He had said:
“I don’t think there will ever be a moment where its like, now, we have cryptocurrency regulation because cryptocurrency has now branched out to be so many things, you know, its money, its potential stocks or securities, its commodity, its property and then that’s just in the U.S.”
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