UAE Securities and Commodities Authority announces draft Crypto Asset regulation

In a recent press release published by the UAE SEC, the Commission announced that it has issued its first draft  pertaining to crypto asset regulations within the UAE. In the announcement it calls on financial and capital market entities, researchers, media, and interested parties to provide their opinions on the draft before the 29^th of October 2019. The comments, opinions will be taken into consideration before final crypto asset regulations are published. 

The UAE SEC has provided an email address for feedback sto-regs@sca.ae. According to the release the crypto asset regulation draft includes 28 Articles and  touches upon all related activities with regards to crypto assets, including creation of crypto assets, issuing, transacting, storing and securing. It focuses on investor protection and the curbing of financial crimes as well as security and data protection

The draft also discusses the rules and regulations with regards to crypto assets including who can deal with them whether they are capital markets, accredited investors, and custody holders, as well as exchanges, brokers, and marketers.

The announcement just follows an article that was published in Trustnodes entitled “ SEC Extends investment prohibitions to Russia London and Dubai”  The article discusses American Securities and Exchanges Commission claim over global jurisdiction of public Blockchains with its temporary restraining order against Telegram Group Inc. and TON Issuer Inc. SEC says Telegram raised $1.7 billion from 171 individuals or entities where about a third of it was from 39 U.S. purchasers in return for 2.9 billion Gram, a native crypto in a proposed new blockchain.

Their court action is intended to stop them from launching the blockchain, but Telegram itself is based in Dubai. Telegram executives say “Most of the developers behind Telegram originally come from St. Petersburg, the city famous for its unprecedented number of highly skilled engineers. The Telegram team had to leave Russia due to local IT regulations and has tried a number of locations as its base, including Berlin, London and Singapore. We’re currently happy with Dubai, although are ready to relocate again if local regulations change.”

In the article published the author recognizes that neither Russia, nor Berlin, nor London, nor Singapore are exercising jurisdiction, nor  is Dubai. TON Issuer Inc is incorporated in the British Virgin Islands, a British oversees territory. Britain is not exercising jurisdiction.

Previously the UAE Securities and Commodities authority  announced it would release crypto regulations in 2019