The United Arab Emirates’ (UAE) Securities and Commodities Authority (SCA) has become the latest regulatory body to draft proposed rules for crypto-related businesses operating within its jurisdiction.
The SCA revealed the development in an official statement published Oct 15, acknowledging that the move is part of its role in regulating and developing the UAE's financial market.
Crypto industry participants, investors, financial analysts, capital market firms, and any interested parties were invited to contribute to the proposed rules as soon as possible with the final submission deadline slated for October 29.
According to the announcement, the draft regulations for crypto in the UAE consists of 28 sections covering the different aspects of the emerging space, including token issuance, custody, security control, governance standards and requirements for companies participating in the industry.
Upon receiving comments, the SCA stated that it would draft the final rules, although it did not provide a timeline for the country to adopt the regulations.
Meanwhile, the regulator also showed an understanding of the fact that the cryptocurrency space is still nascent and could be subject to changes even after the regulations are rolled out.
The SCA made a provision that following the adoption of the final guidelines, companies could still send in requests to receive clarification on matters that they still need guidance regarding rules that apply for specific classes of cryptocurrencies or other regulatory requirements.
The move by the UAE to regulate the cryptocurrency industry comes amid growing interest in the new space and massive investments into businesses operating within the sector.
In April, Stmarket.co reported that between January 1-April 29, token issuers in the UAE raised $210,516,051 more than 25% of the total revenue and nearly twice the amount raised in the United States and the United Kingdom ($108.4 million).