Reuters notes that the regulator has embraced the progressive fundraising mannequin to diversify the means via which corporations can increase capital, noting that in current years, “weak” fairness markets, coupled with low oil costs, have been adversely impacting Initial Public Offerings (IPOs) in the nation and wider area.
Reuters quotes the CEO of the nation’s nationwide securities watchdog, Obaid Saif al-Zaabi, as saying that:
“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.”
Al-Zaabi added that the ESCA is presently drafting laws for ICOs with worldwide advisers, collaborating with the Abu Dhabi and Dubai inventory markets to develop ICO buying and selling platforms.
Al-Zaabi additionally famous that the Ministry of Economy has proposed new laws for IPOs which can be presently below evaluate by the Prime Minister. As nicely, he talked about a separate initiative requiring that 20 p.c of these appointed to the boards of listed corporations are ladies.
As beforehand reported, the ESCA announcement seems to corroborate authorities sources that indicated earlier this month regulatory proposals for ICOs can be formally entered into legislation upon imminent publication in the UAE’s Official Gazette, an official periodical containing all of the nation’s laws.
At the time, the reviews said that lawmakers had been additionally planning the launch of a regulatory sandbox geared toward attracting higher fintech exercise.