Emirates – The Securities Board adopts the Crypto Asset Activities Law

• Abu Dhabi – Al-Bayan

Date: October 22, 2020 The Board of Directors of the Securities and Commodities Authority held its seventeenth meeting under the chairmanship of His Excellency Abdullah bin Touq Al Marri, Minister of Economy, Chairman of the Board of Directors, through a video communication system. The meeting discussed a number of initiatives aimed at developing the system of financial activities and services related to the state’s securities sector, to match the best international standards and practices. The introduction, issuance and promotion of crypto assets in the country, market licensing, crowdfunding platforms and all activities related to crypto assets were approved.

The meeting dealt with the system for offering and listing companies incorporated in free zones in accordance with the Dubai Initiative X10. The Board discussed a memorandum prepared by the Authority’s management regarding the offering and listing of companies incorporated in the free zones in accordance with the Dubai Initiative X10, by amending the Authority’s Board of Directors’s Decision No. (11 / RM) for the year 2016 regarding the system for offering and issuing shares of public joint-stock companies as a stage. First, to implement the initiative, in order to allow free zone companies to offer their shares within the country.

The Board approved the amendment of some provisions of the Authority’s Board of Directors Decision No. (11 / R.M) of 2016 regarding the system for offering and issuing shares of public joint-stock companies. The authority had previously consulted with the project partners (the Dubai Financial Market and the Dubai Airport Free Zone Authority) regarding the proposed amendments, and it was also presented to the industry partners and sought their observations and opinions, and reflected them in the proposal.

Abdullah bin Touq said: The approval of the Board of Directors expresses moving forward to complete the first phase of the Dubai X10 initiative, and paving the way for the launch of the free zone companies’ market platform, thus contributing to attracting more foreign investments by facilitating the access of free zone investors to the financial markets in Dubai, and making it available in front of them smoothly to help expand their businesses, and in a way that enables them to collect the necessary capital to develop their projects in the region without the need to return to the country of origin, which will positively affect the economic life cycle and support growth. This decision will contribute to strengthening the country’s ranking The Global Competitiveness Report ranked first on the sub-indicators related to the extent to which financial services meet business requirements on the Trade Enabling Index, the capital market and the stock market indicators.

Dr. said. Obaid Al Zaabi, the operation will be under the supervision, supervision and regulation of the Securities and Commodities Authority, which has also taken over the task of coordinating with the Supreme Legislation Committee in the Emirate of Dubai to prepare and issue the necessary legislation to launch and establish the project. He explained that the approval of the decision came from the Authority’s keenness to develop the financial markets in the country and the legislation that regulates its work, in order to increase the depth of the markets and provide new financial tools to investors in securities, and within the authority’s original jurisdiction to regulate the public offering and listing in the state in accordance with its powers in this regard. Issa Kazim, Chairman of the Dubai Financial Market, said: This important step reflects the concerted efforts of various institutions to enhance the position of the state’s markets globally. It also represents a strong impetus to the market’s strategy aimed at enabling free zone companies to be listed on its integrated platform, the first of its kind globally. We are looking forward to listing leading companies active in multiple and fast-growing economic sectors in light of the great interest in joining the platform to take advantage of the advantages of listing, including achieving a greater presence among investors and obtaining the necessary financing, and it will also provide investors with various investment opportunities.

Dr. said. Mohammed Al Zarouni, Director General of the Free Zone Authority at Dubai Airport (DAFZA), This step contributes to enabling the free zone companies to expand the scope of funding sources to ensure the ability to attract strategic investments, by taking advantage of the new legislative structure that provides a trading platform for capital owners and potential investors, Pointing out that the free zone companies in the Emirates enjoy excellent financial records and operational results in the various fields they undertake, which makes them promising investment opportunities for investors wishing to inject new liquidity and invest in emerging companies at the regional level and valued the Authority’s decision as it strengthens the state’s forward-looking vision, and highlights The level of maturity of the financial and investment sector.

Crypto assets

The Board of Directors approved the memo of the authority on the activities of encrypted assets after reviewing the recommendations of the Executive Committee in this regard, after the draft of the project was presented to the industry parties and taking into account the observations and views received by the authority. The system revolves around two topics: the first is the offering, issuance and promotion of crypto assets in the country, and the second is the licensing of markets, crowdfunding platforms, and all activities related to crypto assets. The Authority’s management is looking forward to issuing this system to complete the legislative structure to allow the regulation of encrypted asset issuances of financial symbolic tools and commodity symbolic tools on the one hand, and to regulate licensing of financial activities related to crypto assets, especially exchanges, crowdfunding platforms, trustees and other financial activities on the other hand Encouraging innovation and competition and providing alternative means of financing institutions operating in the country, as well as providing protection for investors in crypto assets and preventing money laundering and terrorist financing crimes.

The Authority’s Board of Directors approved the amendment of some provisions of the Authority’s Board of Directors’s Decision No. 11 of 2015 regarding the regulation of clearing work in the commodities market, and this included making amendments to Clause No. (20 / H) of Article No. 10 as well as amending Clause (First / 6). 1) of the decision so that it is one of the responsibilities of the board of directors’ to form a risk committee consisting of the members of the board of directors, the executive management of the clearing company, and the members of the clearinghouse.

IOSCO conference

The Council reviewed a memorandum regarding the postponement of the organization’s hosting of the annual conference of the ‘IOSCO’ organization that was scheduled to be held in November, based on the organization’s decision to hold it through visual communication technology, as a result of the conditions the world is going through due to the ‘Covid 19’ pandemic, and in light of what the organization has shown – in a way. Exceptional – From the possibility of the Authority hosting the 2022 annual conference, the Board agreed to host the organization’s annual conference of 2022. The Board also approved the Emirates Telecommunications Company’s request to extend the period of purchasing its shares for a year, provided that the extension request is submitted to the company’s general assembly for approval.

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