Once again, the U.S. finds itself way behind the proverbial curve in regulations covering blockchain innovation. Beginning next year (2019 if you’re keeping up), the United Arab Emirates will be introducing new rules that will allow domestic companies to use ICOs (initial coin offerings) as a fundraising option. Crypto tokens as an alternative to an IPO should certainly ease capital raising and, hence, foster growth and innovation in the UAE. Will Dubai now become “Zug on the Gulf?” Read more on how the rest of the world is moving forward.
(Bill Taylor/Fintek Capital)
“The United Arab Emirates (U.A.E.) has announced plans to introduce new rules that would permit initial coin offerings (ICOs) as a fundraising method for domestic companies.
Intended for introduction in 2019, the new rules would allow firms to raise capital via crypto token sales as an alternative to traditional methods such as IPOs, according to a Reuters report published Monday.
The news was revealed by the head of the U.A.E.’s securities watchdog, Obaid Saif al-Zaabi, who said at a seminar today: “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.”
Draft rules covering ICOs are already being drawn up by the regulator in conjunction with advisers from outside of the country, Zaabi said, adding that it is also working with stock markets in Abu Dhabi and Dubai to prepare trading platforms for the new digital assets…”