UAE Takes Final Steps To ICO Regulation
The UAE’s Securities and Commodities Authority (SCA) approved a proposed framework to regulate ICOs, exchanges and other crypto asset activities. Notably, the framework considers digital tokens to be securities.
The new regulations also cover the full range of crypto issuance, including: “the type of issue (private/public), the entities that can make the issuing and the legislative requirements thereof, such as, inter alia, registration and fees, the Blockchain operators, the targeted entities by issue type, the minimum content of the prospectus (Whitepaper), liability thereof, and whether registration is or is not required by issue type.”
The new framework suggests that ICOs must approach the SCA, and the latter will then determine if the company falls under the regulations. Similarly, market intermediaries and operators dealing with a potential ICO must be approved by the regulator. The approval procedure reportedly looks similar to the one for an IPO on the stock market.
The SCA statement includes the following explanation of the proposed framework: “The presentation also discussed the licensing requirements for the platform of issuance, trading, clearing, listing, custody, settlement and payment to be defined as a central trading, custody, clearing, and depository platform, as well as the legal form to be taken by such platform. Furthermore, the presentation addressed the regulation of listing and trading of such securities, smart contracts used in the securities, the opening and registration of an e-Wallet on Blockchain, especially the KYC and money-laundering requirements.”