According to reported in Reuters, the UAE government has announced its plans to introduce ICOs as a legitimate way of raising fresh funds for the local companies. The Head of Emirates Securities & Commodities Authority (ESCA), Obaid Saif al-Zaabi told a seminar.
According to the plans, the country should have regulations in place for ICOs for corporate funding by the end of the first half of 2019. Currently, ESCA along with Abu Dhabi and Dubai stock market officials are drafting regulations for ICOs with the help of international advisers and is also developing trading platforms and listing options for the offers.
“The board of the Emirates Securities & Commodities Authority has approved considering ICOs as securities. As per our plan we should have regulations on the ground in the first half of 2019.”
The major reason for introducing ICOs as an alternative to IPOs is because of low oil prices and a weak equity market for the last couple of years has severely dented IPO performance in UAE and Gulf region as a whole.
The new plan will make UAE one of the few countries in the world, that would have introduced and implemented a regulatory framework around ICOs and digital currencies. The UAE government is banking heaving on blockchain technology to improve its governance process and fuel the next generation growth.
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