UAE Regulator To Recognize Tokens As Securities
The Securities and Commodities Authority of United Arab Emirates introduced a plan, clarifying the procedure of crowdfunding through initial coin offering (ICO). This step includes acceptance of tokens as securities, Arab News reports.
Sultan bin Saeed Al Mansouri, the head of the agency and UAE economy minister, confirmed that the state is to classify cryptocurrencies as securities. He specified that the plan includes the range of mechanisms aimed at digital assets controlling.
The skeptical United Arab Emirates came to this decision after studying the world's best practices in the field of cryptocurrencies. It is noted that the fintech industry is becoming more favorable in the state, which is ready to apply technologies in the domestic financial market under the international standards.
Previously, the Arab regulator claimed the initial coin offerings is the speculation and criticized high volatility of cryptocurrencies. The authority warned investors that they participate in ICOs at their own risk. Moreover, because of such characteristics, tokens do not match the norms of Islam and can be classified as haraam (Arabic "sin" - ed.), a local financial company ADAB Solutions states.
Nevertheless, the team is preparing to open the first Islamic crypto exchange, which will provide only the services allowed in the Muslim world.
Private companies in Dubai are free of tax, so the largest free economic zone is located here. Earlier this year, Regal Assets, the American crypto firm, got a license for operations with tokens in the city, including storages and brokerage services.