The UAE SCA ,(Securities and Commodities Authority) during its recent Board of Directors virtual meeting headed by H.E. Abdulla Bin Touq, Minister of Economy and President of Board of Director has approved the crypto assets legislation.
According to the SCA press release, the meeting discussed several initiatives to develop the financial service sector related to stock market to meet the highest international standards. The meeting discussed several topics and issues in relation to the stock market as well.
First the board discussed and approved UAE’s 10X in terms of permitting companies in free zone areas to list on the stock exchange in accordance to Dubai 10x STRATEGY amending as such the board’s decision 11/R.M. 2016.
The board also amended others terms and conditions with regards to decision number 11/R.M. for the year 2016. These amendments were made in consultation with DMCC, and Dubai Airport free zone as well as institutions in the manufacturing sector. H.E. Abdullah Bin Tawk, Minister of Economy stated, “the approval is a roadmap to the launch of Dubai 10X initiative for a free zone company stock market which will bring in increased foreign investments, allowing companies in free zone areas to grow their business and attract investments improving the economic growth. It will also increase competition.”
The board then went on to discuss the crypto assets and its regulation The board of directors approved the draft consultation law after public consultations. The legislation covers two topics, the creation, issuing and marketing of crypto assets in the country, as well as the licensing of crypto markets, crowd funding platforms and all activities related to crypto assets.
With this The SCA aims to complete the legislative infrastructure for the crypto assets in relation to financial markets and instruments, in addition to commodities from one side as well as the licensing of financial activities related to crypto assets especially when it comes to exchanges, and crowd funding platforms while ensuring security, encouraging innovations and competition in the alternative finance sector. The SCA will endeavour to ensure the protection of investors dealing in crypto assets, and ensure there is no money laundering activities or financing of terrorism.
Finally amendments were made to decisions with regards to clearing houses in the commodities markets including decision number 11 year 2015, with regards to the regulations of clearing entities in commodities market. Amendments were also made to decision number 20.H related to subject 10 to create a risk council that includes SCA board member as well as CEOs of clearing entire and its members.
Many companies, and entities dealing in the crypto asset space has been waiting for the final regulations with regards to crypto assets in the UAE. The SCA had announced the draft crypto asset regulation in October of 2019, a year later it seems that the law has finally been approved. This will create a huge boost when it comes to crypto trading, crypto assets as an alternative investment tool, and the implementation of digital currencies in general.
UNLOCK has been told from sources close to the matter that the law will be published soon on UAE SCA's website.