ICO tokens can be recognized as securities in UAE

0
848
ICO tokens can be recognized as securities in UAE
ICO tokens can be recognized as securities in UAE

The United Arab Emirates is studying various approaches to regulating the ICO. One of them is to equate tokens with securities.

The Securities and Commodities Authority of the United Arab Emirates (SCA) studied the market of crypto and ICO, the approach of various countries to their regulation and prepared a set of rules and mechanisms for cryptomarket. Sultan Bin Said Al Mansouri, Chairman of the Board, said that the token and the initial offer of coins will be regulated in accordance with the current securities laws. This will be the first step on the road to modernization and improvement of the financial system of the state securities, concluded Al Mansuri.

Get The Latest Cryptocurrency News First - Join Us In Telegram

The new rules of regulation will come into force after their publication in the official media of the UAE.

Projects that are planning to conduct ICO in the UAE will need to be consulted by lawyers and the UAE regulator to avoid problems when selling tokens in the UAE market.

The management also recalled that ICO-tokens are high-risk and speculative assets, their prices are extremely volatile, and then investors should decide to participate in such crowdfunding campaigns at their own risk.

In September 2017, the Dubai Financial Supervision Authority called on investors to fear the “risks” inherent in the “initial placement of the tokens.” “These proposals should be considered as investments with high risk,” – explained the financial regulator.