1. Introduction

1.1 This Guidance is issued under section 15(2) of the Financial Services and Markets Regulations 2015 (“FSMR”). It should be read in conjunction with FSMR, the relevant Rulebooks of the Financial Services Regulatory Authority (“FSRA”), the Guidance & Policies Manual of FSRA, the ‘Guidance – Regulation of Virtual Asset Activities in ADGM’1 and the ‘Guidance – Regulation of Digital Securities Activity in ADGM’ (“Digital Securities Guidance”). 2
1.2 This Guidance is applicable to those considering the use of initial coin or token offerings (“ICOs”, also known as a Coin or Token Sale) to raise funds. The Guidance is also applicable to those considering transacting in, and the general use of, virtual tokens and Virtual Assets (as defined below).
1.3 The Guidance sets out FSRA’s approach to digital security issuers seeking to raise funds through ICOs, and market intermediaries or operators dealing in or offering services in digital securities and Virtual Assets.
1.4 This Guidance is not an exhaustive source of the FSRA’s policy on the exercise of its regulatory mandate, and the FSRA may impose other, specific conditions to address any specific risks posed by the proposed activities set out herein.
1.5 The FSRA is not bound by the requirements set out in this Guidance and may waive or modify this Guidance at its discretion where appropriate.
1.6 Unless otherwise defined or the context otherwise requires, the terms contained in this Guidance have the same meanings as defined in FSMR and the Glossary (GLO).

1 https://en.adgm.thomsonreuters.com/rulebook/guidance-regulation-virtual-asset-activities-adgm
2 https://en.adgm.thomsonreuters.com/rulebook/guidance-regulation-digital-securities-activities-adgm