Many countries in the Middle East such as the UAE have shown a distinct interest in cryptocurrency in the last few years and this has manifested in grants been given out, competitions being held as well as the implementation of blockchain and crypto-related initiatives around the various countries. While many places around the world might be somewhat reluctant to embrace blockchain and cryptocurrency, many countries in the Middle East seem to be going in headfirst and wanting to get in on the crypto action as early as possible before the technology becomes completely mainstream.
According to an October 15, 2019 statement, the United Arab Emirates’ (UAE) Securities and Commodities Authority has released draft regulations regarding cryptocurrency and they are soliciting public feedback up until October 29, 2019, after which the final resolution will be put in motion.
Ahead of the release of the final draft, the SCA has asked those in the industry such as investors, business owners, developers and so on to give their opinion on the final draft and that the opinions will be taken into consideration. Even after the final regulations have been implemented, those within the industry can seek the guidance of the SCA either on a specific part of the industry on specific laws through their new electronic platform.
Because blockchain is just emerging, it is important to speak to those who interact with it on a daily basis about how laws should be put in place and watch laws will be beneficial. There have been instances across the world of laws stifling the crypto industry and making it hard for participants to conduct their business and it ranges from laws regarding tax to setting up a business to the use of blockchain and crypto. By soliciting these opinions before the final draft is released, the UAE is probably seeking to avoid such situations.
The SCA had previously stated that they would be releasing guidelines for ICOs and that this was due to the rising demand for these guidelines and it was even rumored that the SCA would be working with the Abu Dhabi securities exchange to create a platform for the trading of ICOs.