An introduction to the legal and regulatory position in respect
of ICO's in the UAE, DIFC and ADGM
Introduction
Initial Coin Offerings ("ICO")1 refers to
the innovative mechanism by which start-up businesses and other
companies can digitally raise funds from the public.
In 2017 alone, over US$3 billion was raised through ICOs
globally. In April 2018, it has been reported that ICOs have now
raised more capital in the first three months of 2018 than the
total capital raised in 2017. The subject of ICOs has also sparked
an interest in the United Arab Emirates ("UAE") as
exemplified by the recent launch of the mCoin ICO in Dubai in April
2018.
Despite the growing trend and interest surrounding ICOs, some
countries across the globe have expressly banned ICOs; including
the People's Republic of China ("PRC"), where the
main regulators jointly outlawed ICOs. In South Korea, the
Financial Supervisory Board decided to ban all forms of virtual
currencies. More
