In a country that is nothing short of being a billionaire’s playground, it comes as no surprise that the United Arab Emirates (UAE) is working on launching its own ICO regulations. You can already buy gold bars from vending machines, so why not list your ICO in this metropolis full of people waiting to drop their cash on promising projects. The UAE’s Securities and Commodities Authority (SCA) has announced that it’s currently working on ICO framework and plans to introduce it as law before Q3 2019 commences.
ICO Regulations to Make ICOs Safer
The ICO market is seen as the wild west, fraught with danger and scams lurking around every corner. While this is true to a certain extent – just look at Westland Storage and PinkDate – there have been a number of legitimate and successful ICOs. France led the way in creating ICO regulations, making them as tough to participate in as IPOs, with a ton of paperwork and information for prospective investors. The Bahamas are also looking into creating their own regulations built around a similar framework to the French. These new regulations make the ICO space safer for investors, meaning we could witness a boom in ICOs being filled during 2019.
UAE Contemplating Own Crypto
On top of its new ICO regulations, the UAE is also assessing whether it should use Ripple’s XRP for cross-border payments or create its own version instead. If it uses Ripple’s platform, the country’s banks will be added to a huge network of banks that currently use Ripple’s technology to power their transfers. Creating its own would mean that the country’s banks need to invite other banks to join its platform and carry out all the work Ripple has already done. Ripple looks like the clear-cut choice, but for a country with a seemingly infinite amount of money its own crypto for cross-border payments could very well be on the cards.
Dubai Launching Blockchain Payment System
Dubai has decided to get in on the blockchain hype nice and early, being the first Emirate state to launch its own blockchain project. Citizens in Dubai can now use the government’s blockchain payment portal to pay for a number of government services, including traffic violations, licenses, and permits. Currently the system is only connected to 41 entities – 27 government entities, and 14 non-government entities – but it plans on adding more in the near future.
These new ICO regulations will help protect Emirati investors as well as create a safe haven in the Middle East for ICO projects. The ecosystem that these regulations will create is expected to push the UAE towards becoming a global hub for blockchain projects and ICOs.