Earlier this month, the Financial Services Regulation Authority
of the Abu Dhabi Global Market joined the ranks of various
regulatory agencies from countries, including Australia, Canada,
and the United States that have addressed ICOs, by issuing
Supplementary Guidance on the regulation of ICOs and virtual
currencies. The Guidance offers parameters for classifying, for
legal and regulatory purposes, various types of digital assets. The
Guidance is generally consistent with the product-and
activity-based regulation approaches of the United States and the
European Union.
The increasing popularity of cryptocurrency sales and
"initial coin offerings" ("ICOs") has been an
active area of concentration globally for financial regulators and
self-regulatory organizations.1 Lawmakers and regulators
in every region are considering whether cryptographic assets, known
as "tokens" or "coins," are novel propositions
requiring new regulatory regimes or fit squarely into
