Finding common ground regarding the regulation of crypto assets may be easier said than done in lots of countries. In numerous cases, legislators cannot come to an agreement on how to best approach this innovative, digital assets that are changing the financial landscape of the planet.
As it turns out, one of the world’s richest countries, the United Arab Emirates, will ask for the feedback of the community regarding cryptocurrency regulations, according to recent reports that surfaced in the last few hours. Through the Securities and Commodities Authority (SCA) the country already published draft regulations for these assets.
The Process Will Last Until October 29th
The SCA published an official statement a few hours ago, in which it states that it will gather the public’s opinion and feedback on the draft regulations. The process will last until October 29th, and after that, the organism will provide the final drafted legislation for cryptocurrencies and related assets.
Authorities made the right call when they decided to gather the opinion of the masses because knowledge is power and they stand to benefit by reviewing insightful comments and other recommendations about how to best tackle such a sensible and controversial issue.
According to the message published by the SCA, all the actors that make their living by interacting in the crypto industry will be able to provide their opinion and feedback on the draft. That includes investors, the community in general, brokers, analysts, legislators, media, and researchers, among others.
28 Total Sections
The statement also notes that the document has a total of 28 sections, in which all aspects of cryptocurrencies and the industry in the UAE are covered. Among these parts are requirements for those that issue tokens and related assets, security and custodial measures and policies, how to fight finance crimes, information security controls, governance standards, and more.
The SCA also stated that after the process has been completed and the legal document that regulates cryptocurrencies is finalized, those that take part in the industry and in the market will have the ability to ask the institution for guidance about specific sections and parts of the regulating document through a digital channel.
Notably, the Securities and Commodities Authority had said in the past that it would introduce ICOs (Initial Coin Offerings) regulations and limitations in the draft before 2019’s second quarter.
High ICO Demand
Back then, Obad Al Zaabi, who is the CEO of the institution, observed that there was a high demand in ICO registration and licensing. At the time, local media outlets were reporting that the authority, known as the UAE’s financial regulator, will work alongside the Abu Dhabi Securities Exchange and Dubai Financial Market with the goal of developing an ecosystem for ICO token trading.
At the start of the year, authorities in the United Arab Emirates and Saudi Arabi let the world know that they would join forces to work in a crypto asset, with the intention to gain a better understanding about the blockchain technology and how to enable and foster cross-border transactions.
By Andres Chavez
