Initial coin offers (ICOs) and token events are a form of fundraising where you receive tokens that carry certain rights, such as providing access to a new product or service, or an interest in an underlying asset or project.
How an ICO is regulated depends whether:
the token you are offering is a ‘financial product’ (this will depend on the specific characteristics and economic substance of that token)
you are providing a ‘financial service’ (this will depend on the specific structure and features of the ICO)
the person buying the token is a member of the general public (known as a ‘retail investor’) or a very experienced investor (known as a ‘wholesale investor’)
The fair dealing requirements in Part 2 of the Financial Markets Conduct Act 2013 (FMC Act) are broad principles that prohibit misleading or deceptive conduct, false or misleading representations and unsubstantiated representations.