United Arab Emirates: Financial Regulator warns ICOs have read above
the financial supervisory SEC of the United Arab Emirates warns of the risks of new Kryptowährungen, so-called initial coin offerings (ICOs). In a newsletter refers to the authority while the risks of fundraising sales, such as ICO or token presales. Although criticism of the Gulf will wait so the critical tone in the country despite loud – economic interventions and regulations have yet to.
The authority first and foremost reason sees the risks that might be unclear investment willing citizens, where they put their money. So, ICOs would be often completely unregulated and therefore a risk of fraud.
Also, large price fluctuations would be expected as soon as their respective currencies on secondary and mass markets are available. However, this is in the nature of things. Because so-called ICO presales usually first too much is sold lower prices than in the bulk sale. Often, the presale serves as a launch pad and Foundation for further infrastructure before jumping into the business.
In the newsletter, especially investments in foreign ICOs are represented as problem because investors also would lack clarity about the specific regulatory requirements. In this course, the financial supervisory authority stresses would in turn ICOs neither control nor monitor.
So it says in the letter:
“ICOs can be issued by foreign sources and are therefore laws and regulations, which can be difficult to verify themselves. The tracking and reimbursement in the case of ICO collapse could prove to be extremely difficult.”
The SCA wants to make unmistakably clear: who is verspekuliert sit on his losses.
Central Bank in critical waiting attitude
as Golf media report, efforts of the central banks of Saudi Arabia and his little brother, the United Arab Emirates, although run since December of last year Can be used to make Kryptowährungen for the trade. Yet has the international financial activity around Kryptowährungen in the country mostly critical.
So stressed about the head of the State investment authority Mubarak Rashed Al Mansouri in October, there is a lack of supervision of the Bitcoin. He warned that Kryptowährungen could be used to money laundering and terrorist financing. So, crypto companies in the country have to take a serious stand and little chance of foot. The Central Bank granted no licenses. Still exist in the Gulf state of no immediate regulatory intervention. That they already were on the way, Al Mansouri had an idea of last February.
Not only the second largest rich UAE – Gulf region, but to the entire Arab world thanks to oil
which is economy of the United Arab Emirates after Saudi Arabia. Arab investors play as wealthy donors not only in the domestic industry hubs, but an important role – also on the international financial markets. Source of wealth is the most important minerals of the region: oil. Extent to which their money so far is in Kryptowährungen, is pure conjecture. About the Bitcoin however further established itself in conventional finance, should this be also for the gentlemen from Dubai and Abu Dhabi of highest interest. And the move to new Kryptowährungen and ICOs would be not far away.
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