Tuesday 09, October 2018 by Kudakwashe

UAE mulls initial coin offerings to boost capital markets, says SCA

 

In initial coin offering (ICOs), companies issue cryptocurrency tokens to investors, in much the same way as they issue shares in an initial public offer (IPO).

The Securities and Commodities Authority (SCA) has announced that the UAE is planning to introduce ICOs next year to provide companies with a fresh way to raise money, reported Reuters.

Dr. Obaid Saif al-Zaabi, the CEO of Securities and Commodities Authority, said that the board of SCA has approved considering ICOs as securities and they plan to have regulations on the ground in the first half of 2019.

SCA is drafting regulations for ICOs with international advisers and is working with the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Markets (DFM) to develop trading platforms for the offers.

A new law may take effect in 2019 to facilitate IPOs in which family owners sell majority or 100 per cent stakes in the companies they control, added Al-Zaabi.

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