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United Arab Emirates [UAE] opens its doors to ICO regulations, considers tokens as securities

Akash Anand



United Arab Emirates [UAE] opens its doors to ICO regulations, considers tokens as securities
Source: Unsplash

On Tuesday, 11th September, the UAE state report revealed that the financial regulatory authority of the United Arab Emirates has gone ahead and agreed on a plan to bring in crowdfunding through Initial Coin Offerings [ICOs] with a directive to recognize tokens as security commodities.

Sultan bin Saeed Al Mansouri, the Chairman of the UAE Securities and Commodities Authority [SCA] stated:

“The committee has decided to approve the plan to regulate Initial Coin Offerings in the countries to keep up with the changing financial times.”

Sultan bin Saeed Al Mansouri also plays the role in the Ministry of Economy of the United Arab Emirates. The SCA has stated that their main priority is to adopt the financial protocols from countries that are successful in implementing cryptocurrencies and get a few takeaways from them. The body has also gone ahead and revealed that there are further plans to improve the fintech industries within the seven countries in the UAE.

This latest report by the SCA comes directly after the body had stated that investors need to proceed with caution when it comes to digital assets. This warning was also followed up by the SCA by stating that Initial Coin Offerings are fragile and flimsy and users should not place all their trust in it.

Abu Dhabi, the capital of the UAE have their own financial watchdog called the Financial Services Regulatory Authority [FSRA]. The FSRA was the first financial regulator in the UAE to bring about any circulars related to cryptocurrencies and interconnected digital assets. Dubai has also followed in Abu Dhabi’s steps by introducing a model called “proprietary trading in crypto-commodities”, which was put forth by the famous Dubai Multi Commodities Centre [DMCC].

The acceptance of cryptocurrencies such as Bitcoin [BTC] has been on a significant rise with even global superpowers like the United States en route adoption. Just recently, Brian Armstrong, the CEO of Coinbase had given his views on digital assets, calling it a “regulated industry.” He had said:

“I don’t think there will ever be a moment where its like, now, we have cryptocurrency regulation because cryptocurrency has now branched out to be so many things, you know, its money, its potential stocks or securities, its commodity, its property and then that’s just in the U.S.”

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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.


Ethereum [ETH] might have caught a break from bears due to formation of ‘Golden Cross’




Ethereum [ETH] might have caught a break from bears due to formation of 'Golden Cross'
Source: Unsplash

Ether, more commonly known as Ethereum, is the world’s second largest cryptocurrency and it might have turned bullish due to the initiation of the ‘Golden Cross’ in the daily chart. Golden Cross, is when the 50-day simple moving average crosses above the 200-day simple moving average, which indicates that the price has turned bullish and that the cryptocurrency has bottomed.

Source: TradingView

Historically, Ethereum’s last Golden Cross took place in February 2017, when the price of ETH was ~$10; the price after this cross was bumped to $1,600, which was a meteoric rise of 15,000%. As bullish as this sounds, this might not be the good news that the crypto community is hoping for, as the ‘Golden Cross’ isn’t absolute and there are times when the crossover could be a fakeout. Crossover fakeouts had occurred for Bitcoin in 2014.

The weekly chart for Ethereum has been consistently forming higher highs since 2019, which is a bullish indication. The MACD indicator and the RSI indicators are both indicating a steady rise since 2019.

All aboard the ‘Speculation Train’

If another meteoric rise is to be expected from the crypto ecosystem, the price has to undergo a parabolic rise. The price of Ethereum at press time was $174 and had a market cap of $18 billion; assuming approximately 10,000% increase [instead of the 15,000% rise], the price of Ethereum would reach approximately $8,000 by March 2020.

A Reddit user @alkalinegs commented:

“if you look at the last golden cross early 2017 it took a few days till something happend. death cross 2018 even resulted in a bulltrap. -> dont expect an immediate reaction.”

Quite a few people use the exponential moving averages and disagree with the use of Simple Moving Averages, which is opinionated. Another Reddit user, @DeliciousPayDay commented:

“I strongly disagree. SMA 200 is more important and everyone in crypto looks at it. After breaking the 200MA at $151 ETH went straight to $180 before being sold off, and bounced directly off the 200MA the next day turning resistance into support. The 50/200 golden cross just happened on the SMA and the last time that happened ETH went from $12 to $1400.”

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