New Crypto Regulations in the UAE: What You Need to Know

The Launch of Draft Regulations

On October 15, 2023, the United Arab Emirates’ Securities and Commodities Authority (SCA) unveiled draft regulations aimed at the crypto asset sector, opening the floodgates for public input and excitement alike. The SCA is on a mission, collecting feedback until October 29 that will shape the future landscape of crypto regulation in the UAE. Talk about a tight deadline!

Who Can Weigh In?

And who exactly can throw their two cents in? Well, if you’re an investor, broker, financial analyst, researcher, or member of the media, congratulations! You are invited to share your thoughts. The SCA assures all feedback will be considered, leaving many wondering if their opinions will make it into the final document or end up as a footnote in a long-lost folder.

A Comprehensive Framework

The draft consists of 28 detailed parts, diving headfirst into every nook and cranny of the crypto industry in the UAE. Topics it covers include:

• Requirements for token issuers
• Security and custodial policies
• Protecting investors and combating financial crimes
• Information security controls
• Technology governance standards

So, if you’ve ever fantasized about diving headfirst into the complex world of financial regulations, this is your chance!

Guidance After Implementation

Once the dust settles and the regulations are enacted, market participants won’t be left hanging. The SCA promises to offer guidance on industry specifics via its electronic services system. In other words, you won’t have to guess yourself into oblivion.

ICOs and Future Cooperation

Flashing back to 2019, the SCA had grand plans to introduce ICO regulations. With significant demand in ICO registration, cooperation between the SCA, Abu Dhabi Securities Exchange, and Dubai Financial Market flourished. The idea was to create a platform where ICO token trading could thrive. Now, with renewed interest in cryptocurrency and blockchain, the collaboration is likely more relevant than ever.

An exciting cherry on top? In early 2019, the UAE and Saudi Arabia joined forces to explore a cryptocurrency designed to illuminate blockchain’s implications and smooth out cross-border payments like a silk scarf across a freshly polished table. Who wouldn’t want in on that?