The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) issued a Guidance on its approach to ICOs on October 9 2017 under the Financial Services and Markets Regulations 2015 ("FSMR").
The FSRA notes that some tokens such as a digital identity record, a voting right or an access token might not represent a financial assets. It observes also the rise of fundraising techniques where the token represent a traditional regulated issuance. The FSRA states that its approach will be case by case and neutral to technology
When a token represent a security requirements include the issuing of a prospectus. Exemption may apply if the offer is directed at professional clients, or fewer than 50 persons in any 12 months period or the payment by a person to acquire Securities is at least $100,000. Additionally, party involved in the operations will have to be licensed or approved by FSRA.
Otherwise, while there will not be specific regulations under FSMR, regulated firms will have to demonstrate that it complies with its obligations when carrying such activities.
Finally Derivatives of virtual currencies and Security Token are regulated as Specified Investments under the FSMR. Market intermediaries and market operators dealing in such Derivatives will need to be licensed or approved by FSRA.
