Authorities in the United Arab Emirates (UAE) are working on legislation that would permit the classification of ICOs as securities, and let companies use the fundraising model as a new way to raise cash.
Reuters reports how regulations are being prepared for release during the first half of 2019. The Emirates Securities & Commodities Authority is collaborating with international advisors on the regulations, and is also working with entities across the Gulf region to develop trading platforms.
A Jumpstart For A Nationwide Market
The move by authorities in the UAE sees to be apart of a broader strategy to help companies inside of the small nation bolster their coffers in the face of weak equity and oil markets.
Both of these factors have also taken a big toll on the number and breadth of IPOs launched across the country and wider region.
The Ministry of Economy is currently waiting for approval concerning a law that would facilitate IPOs when owners sell a majority stake in the company.
Bullish On Blockchain And Cryptocurrency
The United Arab Emirates has expressed a keen interest in cryptocurrency and blockchain.
In August, CryptoGlobe reported how a UAE-registered firm called ADAB Solutions was set to launch the First Islamic Crypto Exchange. The Exchange is Sharia-compliant, and the company estimates there will be a $4.4-billion-dollar monthly turnover in the first 18 months of operation.
About a month later, digital security advisors advocated that any legal frameworks and structures pertaining to cryptocurrency should fall in line with the national Emirates Blockchain Strategy.
Some argued it was important for the UAE to set a strong precedent since the Gulf nation is known as a global economic hub.
The wide-sweeping Strategy is focused on getting the country to carry out at least half of banking transactions on a blockchain-based system by 2021.