The UAE State report on 11th September declared that the financial regulatory authority of the UAE has approved the plan of bringing in crowdfunding through Initial Coin Offerings(ICOs) with the decision of recognizing tokens as security commodities.
On this matter, the Chairman of the UAE Securities and Commodities Authority(SCA), Sultan bin Saeed Al Mansouri stated:
“The committee has decided to approve the plan to regulate Initial Coin Offerings in the countries to keep up with the changing financial times.”
This SCA report comes after the body had given a statement that the investors need to proceed with caution while dealing with the digital assets. Moreover, SCA also supported the statement by saying that ICOs are fragile and flimsy and users should not put all of their trust in it.
Financial Services Regulatory Authority(FSRA), the financial watchdog of Abu Dhabi, was the first financial regulator to introduce the cryptocurrency circulars and the digital assets.
Following Abu Dhabi’s initiative, the famous Dubai Multi-Commodities Centre(DMCC) also introduced a model called – “proprietary trading in crypto-commodities” in Dubai.
With more and more countries adopting the use of cryptocurrencies, the worldwide adoption of crypto doesn’t seem far.
Let us know what are your views on UAE’s move in the comments below and for more updates, stay tuned to CoinTopper.com