The United Arab Emirates have been in the focus regarding cryptocurrencies lately, especially after some talks about potential regulations for the industry. This move could see many exchanges, intermediaries and crypto companies to move into the big financial zone of Abu Dhabi, the capital of UAE.
Another announcement has been making news lately – this time by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market. According to him, the country is reviewing the development of a regulatory framework containing many industry firms and relevant authorities.
This regulatory move, if established, could potentially make the UAE a shore for many cryptocurrency exchanges and firms. According to the Abu Dhabi regulator:
“We are reviewing and considering the development of a robust, risk-appropriate regulatory framework to regulate and supervise activities of virtual currency exchanges and intermediaries. In considering such a framework, the FSRA intends to consult and work closely with industry participants and relevant professional bodies.”
Obviously, this development will come within months of guidelines and regulations issued by the Abu Dhabi government regarding cryptocurrencies and ICOs. There is no doubt that some of these regulations will be strict – however, the financial markets already separated ICOs (as securities) from cryptocurrencies (as commodities) in the market.
What’s also interesting is that at the time, central banks of the UAE and Saudi Arabia have joined forces, working on the development of a cryptocurrency that could see cross-border transactions all thanks to a cryptographic token.
Crypto Regulation In UK May Take Up To 2 Years To Be Drafted
“Bringing a complex and fast-evolving area like cryptocurrencies into a regulatory framework is going to be a difficult and lengthy process. Added to this, big issues like Brexit are already occupying a lot of regulator’s time,”He also pointed out to the past precedents in the release, stating:
“Past precedents show it can take years to make relatively minor regulatory changes to the financial regulatory regime. For example, it took two and a half years from the Treasury’s original announcement (10 May 2004) for the regulation of home reversion plans to come in force (6 November 2006).”In order to regulate cryptocurrencies, the Treasury Committee will need time to study the industry and know which "specific activities related to cryptocurrencies" would require monitoring, certain proposed regulations, consultation periods and changes.
ICO Legality In South Korea To Be Confirmed This November
The official was also responding to the question regarding ICO permission that was raised by Jeon Haecheol, a lawmaker from the ruling Democratic Part, voicing the support for lifting the current ICO ban. As he said during the questioning:
"We are going to form the position of the government in November based on the results of the investigation at the end of October."
"If we waste time, the blockchain industry could face huge difficulties. We need to look at very realistic and specific ways to nurture the blockchain industry, and I think permitting ICO is one of them."
In May this year, lawmakers from the National Assembly, which is the country's legislative arm, pushed for a removal of the ICO ban. According to recent reports, the FSC is actively investigating token sales projects with a questionnaire that seeks information on extensive project details as part of its efforts to review the ICO ban case.
"Many people say ICO should be allowed, but ICO's uncertainty remains, and the damage is too serious and obvious."
A State-Issued Cryptocurrency Is ‘Evaluated’ By India’s Government
According to some rumors from the officials, the cryptocurrency might be named "Lakshmi" inspired by Hindu's goddess of wealth and prosperity.
“Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”
UAE To Boost Capital Markets Financing By Recognizing ICOs As Securities
“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.”Last year, Abu Dhabi issued a strategy on initial coin offerings, regulating them as securities. However, cryptocurrencies were not classified as a legal tender but are still considered as commodities by the Abu Dhabi government. In the past several years, domestic companies have gone through a very hard period by having difficulties raising finances because of the low oil prices within the UAE and the broader Gulf region. This is why this new law is seen as a major boost for domestic companies by making it easier for them to obtain funds and run the business smoothly. If this law is approved by the United Arab Emirates’ prime minister, it will take effect in early 2019 and there will be a mandated place for women on the board by minimum 20% in publicly listed companies.
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