UAE is set to give green signal for ICOs as 'Securities'

[Quantumcrypto317]

The past few years have seen the UAE struggle in equity markets. This, along with plummeting oil prices have severely affected Initial Public Offerings. Thus, for domestic companies, raising funds has become a huge challenge.

To increase financing in capital markets, the UAE government will enable domestic companies to
raise funds by engaging in commodity based ICOs.

Cryptocurrencies, while not classified as legal tender, are considered commodities by the government of Abu Dhabi.

UAE securities market watchdog chief Omar Saif al-Zaabi said:

“The board of the Emirates Securities & Commodities Authority [ESCA] has approved considering ICOs as securities.
 As per our plan, we should have regulations on the ground in the first half of 2019.”

If approved by UAE's prime minister, the new law will take effect in 2019.

Considering that the Middle east is usually not acceptable of the world's various regulations, this is a small yet significant win for the world of cryptocurrency and Bitcoin in particular.

However, my worry is that once ICOs assuage the damage done by the existing economical problems, will they still be entertained by the economy?

The reason I have asked this is because ICOs have still not been established as a part of the core of any economy.

Reference link- https://www.ccn.com/united-arab-emirates-to-approve-icos-as-securities-in-2019-to-boost-corporate-funding/

[anitaraymonds]

Whatever eventually  happens  concerning the awaiting the approval of UAE council  to allow ICO to be used to raise fund for companies. This law will also treat cryptocurrency as securities. Bitcoin will be much in demand come 2019 when the law will become effective. The demand of bitcoin will increase and this will further deepens the adoption of bitcoin world wide bearing in mind the status of Dubai and the economy of the world. This will make shops in Dubai to accepts bitcoin for payments of their goods and services including hotels for their rents.

[Herbys]

Recall earlier this week the European Organization of Securities and Markets (ESMA) stated that it intends to prepare a report by the end of this year, which will set out its position regarding the regulation of the ICO sphere.

[bitfocus]

Great! there will be more Arab and Oil money inc Crypto now!

[mintomia199]

If the law will execute,it will be awesome for crypto industry. Then UAE people can use crypto to pay in their daily needs. Bitcoin price has a great chance to pump in the beginning of 2019.

[coin-investor]

This is ok as long as they can weed out the bad eggs in theSE ICO's because people are losing trust on ICO there are a handful of successful ICO today, if they treat it as securities they might set up a regulation for their own investors on where on ow to invest this is to protect their people's money.

[coinwizard_]

We will soon see an influx of oil based ICOs, 90% of which are likely to be scams. Perhaps there will be stricter rules with kyc requirements, e.g. rightbtc in dubai requires kyc for withdrawals from the exchange

[Nephewalli]

That's great news because UAE is a very rich country and can pump a lot of money into crypto.

[ngm22585]

Wow, this is absolutely huge news.

The wealth in Dubai alone is astounding.

[kzozenberg]

The Arab Emirates is a great state that knows how to do business and I think their decision is very balanced and deliberate. The ICO market will bring them a good income.