The United Arab Emirates (UAE) has given the thumbs up for a draft of regulations supervising Initial Coin Offerings (ICO).
This was reported by local media outlet WAM citing sources within the government.
The move comes in addition to lawmakers adopting plans for a regulatory sandbox aimed at enticing better fintech activity.
“The sandbox will act as an environment that attracts innovators to test innovative products, services, solutions and business models in a controlled space,” a report from the Securities and Commodities Authority (SCA) read, adding:
“This can be achieved by adopting an approach of relaxing and / or waving regulatory requirements for participants in the sandbox, while at the same time, ensuring that appropriate consumer protection safeguards are in place.”
The regulatory proposals involving ICOs for the approval from the SCA in July, while WAM reported that the agreement would enter into law upon its publication in the UAE’s Official Gazette, an official periodical holding all the country’s legislation.
“The SCA Board of Directors has approved the SCA plan to regulate the ICOs and recognise them as securities,” the report stated, adding:
“The Board of Directors, having reviewed a study on the best international practices in this regard, has issued a directive that the procedures for trading digital token are to be regulated. The plan developed by the SCA includes a set of mechanisms as part of an integrated project to regulate digital securities and commodities.”
The UAE has wanted a comprehensive policy of fintech integration in the past few years, with an emphasis on blockchain at both municipal and state level.
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