The UAE is currently one of the most advanced countries in terms of new technology included in day-to-day activities of the population and companies operating in the emirates. Dubai and Abu Dhabi are the most sought emirates for doing business in the UAE which is why the authorities here have created flexible regulations related to setting up businesses in high-tech sectors such as blockchain technology and cryptocurrency creation.
With respect to cryptocurrency, initial coin offerings (ICOs) have started becoming popular all over the world as foreign investors setting up startup gather funds through the issuance of virtual coins which are sold. Our Dubai company formation consultants can offer information on the initial coin offerings in this emirate.
Regulations related to ICOs in Dubai
At the moment there is no legislation related to the issuance of initial coin offerings in Dubai, even if during the last 2 years the local government has enabled certain regulations related to the fintech sector. Even if cryptocurrency is recognized by the authorities and the sale of such digital tokens is not forbidden, the authorities have not created a legal framework through which initial coin offering can be controlled.
At the moment, the Central Bank in UAE and the Dubai Financial Services Authority (DFSA) only supervise transactions related to initial coin offerings, which are also known as initial token offerings or token sales.
Our company incorporation agents in Dubai can offer more information on the rules related to initial coin offerings.
How can a Dubai initial coin offering be created?
The first step to have an ICO is to register a company in Dubai. However, there is a step that is skipped in this case and that is the licensing one. The issuance of any public offering is subject to licensing with the DFSA, but in the case of an initial coin offering, no license is required at this moment.
Once the company is registered and the new digital currency is created, the Dubai ICO can be placed on the market for investors to buy it.
If you need more information on initial coin offerings in Dubai or assistance in incorporating a company here or in a free zone, please feel free to contact our local representatives.