Cryptocurrency

UAE ESCA considers adopting ICOs for capital markets

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The Emirates Securities & Commodities Authority (ESCA) is considering the introduction of Initial Coin Offerings (ICOs) for capital markets starting from next year, according to Reuters.

The report revealed that the UAE securities regulator is planning to allow ICOs for the capital market to compensate the decline in fund raising through IPOs that stemmed from the recent drop in oil prices in the country.

Hence, the ESCA will regulate ICOs as securities and not currencies, where the matter is planned to be regulated in the first half of 2019.

Obaid Saif al-Zaabi, the CEO of the country’s national securities watchdog, said the ESCA is meanwhile connecting with the stock markets in Abu Dhabi and Dubai to establish ICO trading platforms.

It is worthwhile to mention that the UAE has always been keen on embracing new technologies and trends compared to other countries in the MENA region.

The Bitcoin is currently trading 0.12 percent down at $6,623.30, noting that it recently has been hovering in narrow range.

The crypto market has been showing sideway movements, perhaps waiting for the arrival of mainstream investors through the approval of the U.S. Security and Exchange Commission (SEC) on Bitcoin Exchange-Traded Fund.

Bitcoin price is “about to explode” directly after the SEC’s approval on Bitcoin ETFs, crypto analyst and trader Ran Neuner tweeted on October 7.

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