The United Arab Emirates (UAE) announced their intention to introduce new rules that would allow initial money as a method for collecting funds for domestic companies.
The intent is to be introduced in 2019, and new rules will allow companies to capitalize through the encrypted sale of tokens as alternatives to traditional methods such as IPO, according to a Reuters report released on Monday.
Obaid Saif al-Zaabi, chairman of the US Securities and Exchange Commission, announced the news:
"The Board of Directors of the Emirate for Securities and Commodities has approved the idea that ICOs are considered values, and according to our plan should have a regulation on the ground in the first half of 2019."
The draft rules for the ICO are already being drafted by the regulator in co-operation with external consultants, Zaabi said, adding that he also worked on the Abu Dhabi and Dubai stock exchanges on the digital platform for new digital assets.
Reuters reports that weak oil prices and weak stock markets in recent years dampen IPO activity in the United States. and through neighboring countries.
In addition to providing a legal basis for international trade organizations, the country can also develop a new law to increase the number of IPOs by allowing family owners to sell up to 100% of companies under their control. The measure is currently awaiting approval by the Prime Minister's Office, Zaabi said.
If and when new ICO provisions come into force, this move would be marked by the United States. One of the countries in the world that have established the regulatory framework for the chain financing method.
Malta has recently issued several accounts to provide the legal basis for ICO, cryptographic currency, and blockchain technology earlier this year as part of its plan to become a "chain of islands."
The island nation's prime minister lately said in a U.N. speech that cryptocurrency is the "inevitable future of money."