According to a report from English-language local news outlet, The National, United Arab Emirates’ financial regulator will introduce initial coin offering (ICO) regulations in the country within the first half of next year.
The Securities and Commodity Authority of UAE (SCA), which is the monitor and regulatory in charge of the market, will reportedly collaborate with the Dubai Financial Market and the Abu Dhabi Securities Exchange to build a platform for ICO token exchange.
Obad Al Zaabi, the SCA chief executive, declared that the regulator has “signed agreements with law firms to come up with the sandbox and rulebooks for the issuance of ICOs.”
As explained by the report, the regulatory sandbox is a framework that aids the development of the financial technology industry. And as for the timeline, Zaabi reportedly said the “legal requirements will be finished by the end of the first half of 2019.” Furthermore, the adoption process of technology and the infrastructure development on the side of the exchanges will consume more time.
“Our market is open. (ICO) registration and licensing is available for all kinds of computers, from across the world. There is demand. We have already received a couple of requests for the issuance of the crypto assets and tokens.”
UAE continues to work towards bringing positive changes in the crypto market. The Advisory Council of the United Arab Emirates Bank Federation (UBF) has considered applying blockchain technology to its member banks.
UAE’s central bank is also working on issuing a cryptocurrency for cross-border transaction purposes in collaboration with Saudi Arabia.