Document background
The Token Sale Agreement serves as the primary legal instrument for conducting token sales in the United Arab Emirates, operating within the framework established by federal regulations and specialized authorities such as VARA, ADGM, and DIFC. This document is essential when a company or project intends to issue and sell digital tokens, whether utility tokens, security tokens, or other virtual assets. The agreement must incorporate specific UAE regulatory requirements, including comprehensive KYC/AML procedures, risk disclosures, and compliance with virtual asset regulations. It typically includes detailed information about the token's characteristics, sale terms, distribution mechanics, purchaser rights, and obligations of all parties involved. The document is particularly crucial given the UAE's position as a leading jurisdiction for virtual asset activities, requiring careful attention to both technological and regulatory aspects.
