In a statement released today by the United Arab Emirates (UAE) Securities and Commodities Authority (SCA), investors were warned to be wary of all digital fund raising schemes including initial coin offerings.
Although advising potential investors that ICOs are highly speculative and open to highly volatile price movements, the SCA appears to concede that a case-specific approach is likely the most appropriate approach.
UAE Adopting Pragmatic Approach
Reiterating that the SCA does not regulate ICOs, the piece also repeated previous warnings from the regulatory body that no formal protection is afforded to investors and they should make their own enquiries as to the risks involved, advising further that information provided by ICOs “may be unaudited and/or incomplete and may present a given investment case in an unbalanced and misleading manner.”
The announcement makes no mention of any upcoming, ICO-specific regulation and appears to put the emphasis back onto the individual to carry out due diligence before engaging in any investment activity related to digital assets.
Companies planning any ICOs were also advised to seek legal and regulatory guidance prior to launching to ensure adherence to any applicable international laws.
The Authority concluded by saying that they have recently established a Fintech team of their own which is to be tasked with implementing any national digital initiatives and observing the latest developments in the blockchain space.