The Abu Dhabi Securities Exchange has released a thought paper heavily discusing cryptocurrencies and blockchain solutions. The securities trading platform has outlined the criteria of issueing cryptos and suggested that its current systems will be upgraded to a modern blockchain based system leveraging on blockchain’s Distributed Ledger Technology (DLT).
ADX move to boost cryptos mass adoption
The blockchain related initiatives being explored by the ADX is a good sign for the crypto industry considering the rampant persecutions the industry has been getting lately. Looking at the news from the United Arabs Emirates (UAE), it is not further from the truth to assume that the region is positioning itself to be the next cryptos haven.
Launch ICOs to capital markets
Early this year the UAE national securities watchdog hinted on plans to introduce Initial coins offerings (ICOs) to the capital market by 2019. This would give traditional investors in securities an opportunity to join the cryptocurrency bandwagon as well as introducing new crypto-savvy investors to its trading portfolio.
This is in contrast to what counterparts like China, South Korea and India are doing. The Asian tigers are still reluctant to joining the cryptos space especially because the industry is largely unregulated. China in particular has warned its citizens against indulging in digital assets due to the assets’ high volatility, digital theft, the possibility that cryptos could be used to fund terrorism and obviously cryptos’ use as a money-laundering tool.
China is also concerned that some nations could use cryptos to evade economic sanctions imposed on them because the coin can hardly be controlled by state regulations.
UAE’s State News Agency WAM reported that the thought paper by ADX was developed through a collaborative effort with the Central Securities Depositories and was aimed at eastablishing a legal framework that will inform the process of tokens issuance among other cryptos related dealings.
ADX’s CEO Rashed Al Blooshi, commenting about the publication explained that ADX will first tranform to a DLT-powered system and develop strong guidelines that will be followed for ICOs issuance. When the plans are implemented, the platform will attract more clients as well as provide more services to existing investors as earlier mentioned.