Regulatory Alerts2020-02-26
Guidance on Digital Securities Offerings and Virtual Assets under the Financial Services and Markets Regulations
The Financial Services Regulatory Authority (FSRA) clarifies the regulatory treatment of Initial Coin Offerings and Virtual Assets under the Financial Services and Markets Regulations 2015. Tokens exhibiting security characteristics are deemed Digital Securities subject to existing prospectus and exemption rules, while non-security tokens are treated as commodities requiring market intermediary or operator approval. Adopting a technology-neutral, case-by-case approach, the FSRA mandates licensed status for firms dealing in these instruments and encourages early engagement for DLT-based fundraising models.
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