As we all know ICOs are a way for startups to raise money by issuing a new cryptocoin, while users pay them in bitcoin or ethereum in exchange. It's similar to crowdfunding but with digital money / cryptocoin.
The ICOs activities in UAE has trigered regulators in Abu Dhabi to begin regulation of initial coin offerings ICOs — the rapidly growing way that cryptocurrency start-ups are raising money, but have warned of the numerious risks involved ICO.
Also the Abu Dhabi's Financial Services Regulatory Authority (FSRA) released guidelines on ICOs and virtual currencies for the first time which is a goodnews for us to know the right ICOs to invest.
Under the guidelines, companies wishing to execute an ICO must approach the FSRA to see whether it will fall under the body's regulation for investor to be on a safe ground. All companies will also have to publish a prospectus, just like a firm would for an initial public offering IPO on the stock market range. All market intermediaries, or secondary market operators dealing with ICOs must be approved by the FSRA respectively for approval.
FSRA is trying like most regulators, like in Japan, to remove disproportionate barriers to sensible innovation. The ICO tech when used appropriately in right direction and in a regulated fashion can be a good innovation to startup. We cryptoLovers are happy that any ICO coming up from UAE is now safe to invest in. Steemian take note and spread the goodnews.
