Business 2 months ago

Dennis Wafula

UAE may soon allow companies to raise funds via ICOs

A new set of rules will soon allow domestic companies in the United Arab Emirates (UAE) to raise funds via initial coin offerings (ICOs).

On Monday, Reuters quoted Obaid Saif al-Zaabi, head of the Emirates Securities and Commodities Authority (ESCA), saying that the board “has approved considering ICOs as securities.” If all goes to plan, a legal framework regulating ICO activities in UAE will be introduced in 2019.

Under the proposed legal framework, companies in the country will be allowed to use ICOs as an alternative to traditional fundraising methods. Currently, firms are using initial public offering (IPOs), which involve selling shares in the company to the public.

The first draft of these new rules is already being set up. According to al-Zaabi, the security watchdog is also working with stock trading platforms in Abu Dhabi and Dubai to prepare them for the new digital transactions.

Lack of IPO activities in the past years has forced authorities in UAE to allow companies to raise their funds using ICOs. Low oil prices and unimpressive equities markets have been cited as the cause of the lack of IPO activities in UAE and its surrounding countries. In addition to new ICOs laws, the state is also planning to create rules that will help raise IPOs. The new IPO laws will encourage family owners to sell up to a 100% share of their firms.

If and when the new ICO regulations come into law, UAE will be among the few countries in the world to have brought in the regulatory framework for the cryptocurrency and blockchain sector. It joins Malta, which recently passed several bills providing a legal basis for blockchain, cryptocurrencies, and ICOs.

Other countries are also hard at work in regulating ICO activities. In September, the European Parliament agreed to draft a set of regulations that would make ICOs more accessible within the European Union (EU).

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

COMMENT

Add a Comment

lastest news

UK crypto exchange CEX.IO makes KYC mandatory

Business 7 hours ago

UK crypto exchange CEX.IO makes KYC mandatory

UK-based cryptocurrency exchange CEX.IO is now requiring all new customers to undergo a mandatory verification process, as part of enhanced anti-money laundering processes. Announced via a press release published by the firm, the London-based exchange ...

Read More
Danish taxman targets 2,700 crypto traders over possible tax evasion

Business 7 hours ago

Danish taxman targets 2,700 crypto traders over possible tax evasion

The Danish tax authority Skattestyrelsen is pursuing as many as 2,700 Bitcoin Core (BTC) traders over taxes in connection with as much as $12.7 million of unreported transactions. In the latest crackdown from a tax ...

Read More
What’s in a name? Blockchain Terminal ICO fraudster allegedly has ‘two identities’

Business 9 hours ago

What’s in a name? Blockchain Terminal ICO fraudster allegedly has ‘two identities’

The promoter behind the Blockchain Terminal (BCT) initial coin offering (ICO) has been unveiled as a disgraced Canadian fraudster who had adopted a fake persona, in an elaborate scheme that fooled employees as well as ...

Read More