The United Arab Emirates (UAE) are trying to join the list of the main destinations for blockchain activities in 2019 due to promising new crypto legislation. Experts have commented on the situation to the United Arab Emirates daily on Monday, December 24th.
While the United Arab Emirates announced a new legal framework for initial coin offerings (ICOs) and hinted at the possible regulation for crypto trade, experts see a possibility for the country to join Malta and Gibraltar as a popular crypted destination.
Hans Fraikin, CEO of Libra Project – a blockchain impact investment program – told The National that the United Arab Emirates are "perfectly positioned to be a global leader in the ICO space". He also believes that the country will become the most promising jurisdiction for tokenized start-ups due to its position in ICOs.
Andrea Bonaceto, CEO of Eterna Capital – a fund management company in London – also believes that the UAE could be "at the forefront of the industry" due to the government's efforts to modernize the financial sector.
However, both experts believe that the United Arab Emirates should promote its developers and investors to ensure a sustainable future of the encrypted industry within the country.
As previously reported by Cointelegraph, the UAE regulatory authority revealed in mid-December that a new ICO policy will be introduced at the beginning of 2019. The Authority responsible for raw materials and the country will be reportedly working with the Abu Dhabi Securities Exchange and the Dubai Financial Market to develop a platform for ICO token trading.
At the same time, the UAE are also developing several projects of cryptocurrency and blockchain at the state level.
For example, the country has collaborated with neighboring Saudi Arabia to develop a cryptocurrency accepted in cross-border transactions. In addition, the Advisory Council of the Federation of United Arab Emirates Banks discussed the application of the blockchain in its member banks to improve Know Your Customer (KYC) processes.