The securities and commodities authority of the UAE is launching a regulatory system to take initial coin offerings, crypto assets and other crypto business under its control. Finance magnates have been reporting that it is official that the tokens generated against ICO would be considered securities.
The guidelines for ICO bring the crypto-based moneymakers, fundraising and private function of presale under the authorities responsible for the token issuance and all regulatory dealings and compliances. It will also look at the important aspects and advocacy requirement like the niche market, fee structure and initial process, blockchain workers, whitepaper content and requirement related to the registration of investors.
The UAE will also emphasize the need of Know your customer policy and anti-money laundering procedures that other countries are following. All the organizers and firms dealing with ICO have to obtain permission from SCA, that is when the UAE releases its first coin offering.
With that, ICO operators must have to launch their manual for the investors, just like a firm have released its prospectus when dealing with initial public offerings (IPO). As reported in June 2018 the Abu Dhabi finance centre provided new guidelines and instructions for cryptocurrency exchanges.
The rules summarize that operators have to pay $125000 registration fee and 60000 annual fees for the launch of new exchanges these measures are instructed for the protection of client and to stop fraudulent activities in launching crypto related businesses.