The popularity of the cryptocurrency segment in the Arab countries continues to increase. Despite this, the government agencies of many states do not plan to introduce cryptocurrency and blockchain technologies to a regulated level. However, some governments still see the prospect of booming technology. The authorities of the United Arab Emirates declared that they are ready to introduce rules for launching ICO projects in their jurisdiction.
According to Reuters, the head of the UAE Securities Commission, Obeid Saif Al-Zaabi, said that the initial placement of tokens would be recognized as a form of attracting investment to finance local companies. New rules for launching ICO-projects will come into force in 2019.
The official notes that digital assets will be sold as securities. In his opinion, this form of attracting investment will become an alternative to the classical financing procedure. The UAE Securities Commission is negotiating with its country’s stock exchanges to prepare the most transparent conditions for launching cryptocurrency platforms where companies can use and place digital assets.
Al-Zaabi also added that the ICO (as a form of raising capital to finance local companies) must be approved by the office of the country’s prime minister. Most likely, the UAE government will legalize the process of initial token allocation and introduce a regulatory framework to regulate relations in this area, which will open up a new flow of funds to its budget from blockchain startups.