UAE to regulate coin offerings. According to a news reported by the Arabian, Sultan bin Saeed Al Mansouri who is the chairman of the UAE Securities and Commodities Authority (SCA) has granted approval to regulate initial coin offerings (ICOs) in the country and recognize the issued tokens as securities.
The important resolution of the SCA Board of Directors follows the review of a study covering best practices in the field applied around the world.
Further, the SCA’s chairman explained that, the adopted plan includes a whole set of mechanisms and is part of an integrated project to regulate digital securities and commodities.
The latest move by the securities regulator indicates a positive change in its attitude towards the fintech industry. The watchdog stated that it is part of a number of initiatives aimed at upgrading the financial activities and services in the securities sector in the UAE in order to match the best international standards and practices.
The SCA also stressed that ICOs are speculative, warning that the prices of the tokens may be highly volatile. It told investors that their involvement in this type of crowdfunding is at their own risk and UAE to regulate coin offerings.