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.Thereport further adds the governments future move toadditionally adopt cryptocurrencies within the country under regulatory sandbox.
A recent report from the Securities and Commodities Authority ‘SCA’ on 4th Sept. stated that:
“The sandboxcanact asansurroundingsthat would pullinnovatorsto testinnovativeproducts, services, solutions and business modelsin an exceedinglycontrolledecosystem.”
Adding further the report mentioned:
“Thiscould be certainlyachieved by adoptinganapproach ofrestfuland / or wavingregulativenecessitiesfor participantswithin thesandbox,whereasat the same time,making certainacceptableclientprotection safeguards.”
TheregulativeproposalsconcerningICOs gained approval from the SCA earlier in July this year,whereasWAMcurrentlyreports the agreementcanenter into law upon itsclosepublicationwithin theUAE’s Official Gazette,an officialperiodical containing all the country’s legislation.
“The SCA Board ofadministratorshas approved the SCAdecision toregulate the ICOs and recognise them as securities.”
WAMmentioned further stated that:
“The Board ofadministrators, having reviewed a study onthe simplestinternational practicesin this regard, has issued a directive that the procedures forcommerce ofdigital tokenareto be regulated. Theplan developed by the SCA includesa collectionof mechanisms asa part ofanintegrated projectto controldigital securities and commodities.”
In recent years, the UAE has pursued in-depth policy for the fintech integration, witha specificfocuson blockchain atbothmunicipal and state level.