According to a local media reporting by ‘WAM’ while citing the govt. sources, stated that the United Arab Emirates ‘UAE’ has recently approved a draft of laws governing ICO’s. The report further adds the governments future move to additionally adopt cryptocurrencies within the country under regulatory sandbox.
A recent report from the Securities and Commodities Authority ‘SCA’ on 4th Sept. stated that:
“The sandbox can act as an surroundings that would pull innovators to test innovative products, services, solutions and business models in an exceedingly controlled ecosystem.”
Adding further the report mentioned:
“This could be certainly achieved by adopting an approach of restful and / or waving regulative necessities for participants within the sandbox, whereas at the same time, making certain acceptable client protection safeguards.”
The regulative proposals concerning ICOs gained approval from the SCA earlier in July this year, whereas WAM currently reports the agreement can enter into law upon its close publication within the UAE’s Official Gazette, an official periodical containing all the country’s legislation.
“The SCA Board of administrators has approved the SCA decision to regulate the ICOs and recognise them as securities.”
WAM mentioned further stated that:
“The Board of administrators, having reviewed a study on the simplest international practices in this regard, has issued a directive that the procedures for commerce of digital token are to be regulated. The plan developed by the SCA includes a collection of mechanisms as a part of an integrated project to control digital securities and commodities.”
In recent years, the UAE has pursued in-depth policy for the fintech integration, with a specific focus on blockchain at both municipal and state level.