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ABU DHABI / WAM
The Securities and Commodities Authority (SCA), posted draft regulations concerning crypto assets on its website, in line with its efforts to regulate and develop capital markets operating in the UAE.
In a statement, the Authority urged all relevant parties including investors, brokers, financial analysts, researchers, media personnel, and others to provide their feedback and input on the draft, preferably no later than October 29. The SCA will take such input into consideration when working on the final wording of the regulations. The draft regulations may be amended in a manner that serves the public interest and has not been made final yet.
Crypto Asset Regulations will encompass all aspects of the crypto assets industry in the UAE ranging from token issuance requirements to trading and safekeeping practices with emphasis on protecting investor interests with compliance of financial crime prevention measures, crypto-asset sake-keeping standards, information security controls, technology governance norms and conduct of business requirements for all market intermediaries.
The regulations lay down standards and requirements for wide range of market participants like issuers of securities, investors including qualified investors, custodians, crypto trading platforms, brokers and promoters engaged in crypto asset industry.
Once these regulations are implemented, it will also be possible for market participants to request guidance on specific token issuance and regulatory requirements from the SCA as a part of e-Services System launched by Authority.