The United Arab Emirates plan to approve the conduct of primary placing coins (ICO) as a legitimate method of attracting investment, recognizing them with a type of securities since the beginning of 2019.
The UAE regulator (ESCA) reported that in the first half of next year, the relevant rules for the functioning of the system in places, infrastructure and trading platforms should be developed. The organization actively cooperates with the government, international consultants, stock markets Abu Dhabi and Dubai in this direction.
This decision contributed to the weakening of stock markets and a decrease in oil prices, which had a negative impact on the IPO, causing a blow to local companies that seek to attract funding not only in the UAE, but also beyond. New norms do not affect cryptocurrencies classified by the state as the goods.
At the moment, the law expects the approval of the Prime Minister of the country. If approved, in addition to the popularization of ICO, it provides for the possibility of selling 100% of its share in the course of the IPO, as well as the increase in the number of women in the Council of publicly registered on the stock exchange of companies up to 20%.
The alibaba electronic commerce gigant also seeks to improve the symbiotic relationship between state structures and blockchain technology. Company