Is Crypto Currency Halal?
The European Central Bank explains virtual currency as a “digital representation of value that is neither issued by central bank or a public authority, nor necessarily attached to a fiat money or currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically”. Examples for virtual currencies include non-cryptocurrencies (e.g. in-game credits) and crypto currencies such as Bitcoin, Litecoin, Stellar and many more.
The Foreign Direct Investment law and associated sector list
In our news alert dated 21st of May 2018, we announced the decision of the Cabinet to draft a federal law on the 100 % foreign ownership of UAE- based enterprises. Within 4 months the UAE government drafted and enforced the Federal Law by Decree No. (19) of 2018 regarding Foreign Direct Investment (FDI law). This law outlines the rules for establishing the 100% foreign owned enterprise in the UAE.
UAE plans ICO Regulations for 2019
The UAE Securities and Commodities Authority (SCA) recently announced that its Board of Directors has approved a plan to regulate initial coin offerings (ICOs) and recognize them as securities, which will allow companies to issue crypto tokens instead of shares. The regulation is expected to be in place in the first half of 2019. The proposed framework will regulate crypto-asset activities, including ICOs, exchanges, and
other intermediaries, and will cover key risks such as anti-money-laundering and counter-terrorist financing, consumer protection, technology governance, and safe custody.Regulation Of Crypto Asset Activities In Abu Dhabi
The Financial Services Regulatory Authority ("FSRA") issued on 25th June 2018 a guidance to the regulation of crypto asset activities in Abu Dhabi Global Market ("ADGM"). It should be read in conjunction with the Financial Services and Markets Regulations 2015 ("FSMR"), the relevant Rulebooks of the FSRA and the FSRA's Guidance & Policies Manual and its 'Guidance – Regulation of Initial Coin/Token Offerings (ICOs) and Crypto Assets under the FSMR ("ICO Guidance").
How Blockchain And Cryptocurrencies Conquer The Sports Industry
The terms “blockchain” and “cryptocurrencies” are nowadays very common in the daily business and the awareness and interest of the society is substantially growing. Thus, also the sports industry has detected the utility of fintech and the plans to implement its instruments for their purposes are present.
UAE Cabinet approves new rule for retired expats
On September 16th, 2018 the UAE Cabinet has approved a law to implement special residency visa privileges for expats retirees provided the requirements are met.
Implementation of VAT in GCC countries up from 2018
It has been officially confirmed that the UAE will implement VAT at the rate of 5% on 1st January 2018. Other GCC countries may do so at the same time or by 1st January 2019, at the latest. It is now understood that the six GCC countries have now all signed the VAT agreement paving the way for VAT introduction across the GCC in 2018. The next steps are for local implementation laws to be agreed in each country. Businesses with operations in the GCC countries of the United Arab Emirates, Saudi Arabia, Bahrain, Oman, Kuwait and Qatar will all be affected.
U.A.E. - Long Awaited new legal framework for non-Muslims to create Wills
In his capacity as Ruler of Dubai, UAE Vice President and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum issued end of October Law No. (15) of 2017 regulating inheritance, wills and probate for non-Muslims. The Law hasn’t been published yet. Pursuant to the law, any non-Muslim who will register at Dubai Courts or DIFC Courts prior to this Law remains valid.
BITCOIN on the radar of UAE Government and UAE Central Bank
Certainly, bitcoin and blockchain appear to be on the radar of the UAE Government and the UAE Central Bank. The UAE Central Bank and Dubai Supreme Legislative Committee are considering the legal status of bitcoin and may issue regulations in which bitcoin is clearly treated as a form of currency and permitted to be used as such in the UAE. The Dubai Financial Services Authority (DFSA) is gathering these days to discuss the regulations of the cryptocurrency within the DIFC. However, the authorities in the UAE are not reaching consensus on their views of this subject which is leading to some confusion.
UAE – Corporate – 100% Ownership of Companies
This morning, 21 May 2018, and as expected since few months, the UAE Federal Government Cabinet, executive branch of the UAE Federation in charge, among other duties, to draft and prepare federal laws and submit them to the Federal National Council, announced a still vague decision allowing 100% ownership of UAE-based enterprises for international investors. It seems that it relates to the current obligation for foreign companies to establish UAE companies with a UAE national holding a certain percentage of the shares in the concerned company.
