The government of the United Arab Emirates (UAE) has decided to collect public feedback for cryptocurrency regulation in UAE.
An official announcement released on October 15 stated that the Security and Commodities Authority would be gathering data from the public of their suggestions on the draft of cryptocurrency regulations. They will collect this data till October 29, and later produce the final draft of the legislation.
The individuals that were invited to contribute their suggestions included brokers, investors, specialists involved in research, media, and finance, etc. The Security and Commodities also added that their suggestions would be taken granted due consideration when drafting the final document.
Need for cryptocurrency regulation in UAE
The statement mentioned that the document consisted of twenty-eight sections taking into account various facets of the digital asset industry in the country.
This included strategies for both security and custody, prerequisites for token issuing, the protection of investors as well as combat against criminal activities, even technology governance grades, to name a few.
After the implementation of the rulings, market users could request counsel at the hands of the authority, extending to matters of industry and regulations via an electronic database.
Cryptocurrency regulation in UAE: Initial Coin Offering
The idea to initiate Initial Coin Offering cryptocurrency regulations in UAE at the year’s end was announced by the authority. Simultaneously, the chief executive officer of SCA, Obaid-al-Zaabi identified the heightened demand for the initiative of an Initial Coin Offering based registry.
It was reported via local authorities that the authority would be working with the Securities and Financial Departments in Abu Dhabi and Dubai Departments to allow for ICO token exchange.
The governments of the United Arab Emirates and Saudia Arabia declared their motive to work together on the initiative of cryptocurrency in 2019 to allow for an improved understanding of blockchain technology itself to further aid the payments made across borders.