United Arab Emirates set to allow ICOs to boost capital markets

09 Oct, 2018
by Richard Allen
News
United Arab Emirates set to allow ICOs to boost capital markets

The United Arab Emirates is working on introducing initial coin offerings (ICOs) next year that would allow companies to use the fund-raising method as a fresh way of generating capital, Reuters reports.

“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,” said Obaid Saif al-Zaabi, head of the country's security regulator.

The ESCA is drafting regulations for ICOs with the help of international advisors and is working with stock markets in Abu Dhabi and Dubai to develop trading platforms.

The move comes as a result of weakening equity markets and low oil prices over the last several years, which have strained IPOs in the Gulf Arab region.

Chepicap recently reported that the city of Dubai is set to launch its own stablecoin, Emcash which will be backed by the UAE’s currency, the dirham.

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