The UAE is reportedly considering new regulation to be launched in 2019, which will greenlight alternative to IPO fundraising via initial coin offering (ICO).
The corresponding statement was made during the meeting by the head of UAE's securities regulator Obaid Saif al-Zaabi, saying that the board of the Emirates Securities & Commodities Authority decided to permit ICO tokens as securities and new rules are likely to be approved in H1 2019.
As the statistics showed, there is some slowdown in IPO in the country which is said to be related to oil price decline and local stock market slump.
For now, Obaid Saif al-Zaabi added that draft regulation for ICO has been already developed. Moreover, trading platforms in Abu Dhabi and Dubai have been notified about upcoming changes, so the companies might be ready to host new assets.
Notably, it is also possible that along with ICO, the new regulation will include the measures that would allow owners of family businesses sell their 100% stake in the company, which is expected to boost the number of future IPOs. According to the reports, this initiative is subject to prime minister approval. In case of the positive determination, the UAE will be the first country that provided a legal framework for such funding.
As it was reported earlier, Malta targets the status of the blockchain island and for that purpose, it has already adopted ICO regulation.