ICO Regulation News Accelerating – Analysis

Share with:

Two significant things happened in the ICO world; South Korea just banned ICOs, and Switzerland’s Financial Market Authority (FINMA) issued a statement indicating that it will start investigating ICOs they feel are not in accord with established financial legislation.

Oliver Bussmann, President of the Crypto Valley Association (CVA) in Zug, Switzerland said:

“The FINMA announcement is in accord with what we have been saying at the CVA. FINMA clearly states in its guidance that it supports the innovative potential of Blockchain technology, but also that, depending on the structure, regulation can and should apply. We think this is another sign of the Swiss regulator’s clear and balanced approach to Blockchain and Fintech.”

The Swiss regulator’s announcement is particularly significant, given that the country is widely perceived as one of the most innovative and progressive sandboxes for cutting-edge financial technology.

Perry Woodin, CEO of Node 40 stated:

“Switzerland and Korea have a decidedly different take on what to do about ICOs. Where Korea has followed China’s lead by imposing an outright ban on ICOs, Switzerland is taking a more moderate approach. The Swiss FINMA Announcement mirrors the SECs bulletin where ICOs will be covered by existing securities regulations. ICOs seem to have a great deal of potential. As regulatory guidance becomes more clear, we should see the entire ICO market mature into a useful vehicle for raising capital.”

“Because the digital token market is so new, I believe that many investors lack the necessary sophistication to assess or appreciate the viability, sustainability, and governance of projects that are raising hundreds of millions of dollars in capital. Such an environment is ripe for abuse, fraud, and waste. Just because the technology is new, bad actors may assume they could abuse investors, so it is reassuring that the FINMA stands ready to investigate abuse and regulation breaches that have harmed investors. Guidance from FINMA will also serve to prevent well-intentioned projects from unintended violations,”said Ryan Taylor, CEO of Dash.

The South Korea ban (following the Chinese ban issued on September 4th) is also a massive hit to cryptocurrency fans and traders, given their top three digital asset exchanges move in excess of half a billion dollars everyday. (Bithumb 24h volume is $348,808,610, Coinone 24h volume is $147,219,510 and Korbit 24h volume is $64,125,380)

“I think that the FINMA statements set exactly the right tone. The agency appreciates the innovative potential of ICOs and is cognizant of the groundbreaking implications of the technology ICOs are driving. This is great news for every company that actually wants to change the world by building the technology they stated and through that provide value to their token holders.

“This type of regulation will seed out fraudulent players, therefore reduce the level of noise in the ecosystem, and help legitimate companies rise to the top. The only players who should be very afraid by the statements of FINMA are criminals looking to defraud potential investors who would otherwise invest their money with companies looking to build the next generation of the internet.”

“Enabling buyers to make informed decisions critically includes introducing regulatory barriers to seed out companies looking to defraud potential token purchasers or engage in illegal activities such as money laundering or terrorist financing. A ban on ICOs, on the other hand, such as that introduced by China and South Korea is simply a naive solution for a complex problem. It is shockingly shortsighted and will inevitably lead to a brain drain of innovators who will now set up their operations in a different jurisdiction,” stated Serafin Lion Engel, CEO of DataWallet.

Ambrosus CEO Angel Versetti added:

“The announcement from FINMA validates the prudent policy Ambrosus has taken in our TGE with the enforcement of strict KYC requirements for all participants. Astute observers recognize that the sector is becoming increasingly regulated and that companies which hope to thrive in the future and to be considered legitimate players in the industry will need to be compliant with appropriate rules and regulations. There have been those who have questioned our strict policy, but we look at today’s announcement as an affirmation of our prudence to date, and consequently, we believe that Ambrosus will be considered an example of how to properly and compliantly conduct a TGE in the future.”

China is the influencer in Asia; after they moved on the ban, the pressure was on for everyone else in the region. But the market largely shrugged this off. The smart money is betting that these bans are a temporary band-aid until more thorough regulations are thought out,” said Polymath CEO Trevor Koverko.

This week, members of the Trump administration also publicly affirmed their interest in exploring potential use cases of Blockchain technology. As South Korea and Switzerland crack down on ICOs, this news could indicate a momentous shift in the market for Blockchain startups.

  • US SEC Goes Charges ICO Businessman For Defrauding Investors – October 1, 2017
  • Pre-ICO Launch: HireMatch Offers Solution to Expedite Recruitment Process – October 1, 2017
  • STK Global Payments Announces The STK Token, Providing Instant Cryptocurrency Payments At Point Of Sale – October 1, 2017
  • ICO Regulation News Accelerating – Analysis – October 1, 2017
  • Streamr, The Decentralized Real-Time Data Economy, Successfully Reaches 5 Million CHF Pre-Sale Cap in 25 Minutes – October 1, 2017
  • BitClave Announces Partnership with Bancor – October 1, 2017
  • Clicktopurchase Adds Blockchain to Established Property Purchasing Platform – October 1, 2017
  • Former White House CIO Joins COBINHOOD as Strategic Advisor – October 1, 2017
  • Steemit Introduces New Way To Monetize Media And Publishers – October 1, 2017
  • Etch ICO Wants to Revolutionise Payroll Platform – Boosted by KPMG Collaboration – October 1, 2017
  • DMarket Announces Second Phase of Token Sale – October 1, 2017
  • DECENT Wins Big at the Central European Startup Awards – October 1, 2017
  • Massively Distributed EOS-derived Blockchain XenonNetwork to Begin Token Distribution – October 1, 2017
  • modum.io AG appoints Simon Dössegger as CEO – October 1, 2017
  • INS Aims To Put Grocery Shopping On Blockchain, Announces Unilever Expressed Interest And ICO Dates – October 1, 2017
  • Coinloan Provides Money Secured On Cryptocurrency – Launching Token Sale – October 1, 2017
  • Verisart And Avant Arte Partner To Provide Digital Certificates Of Authenticity To Artists And Collectors Worldwide – October 1, 2017
  • Goodwill Protocol Ico Looks To Fix Current Broken Economic System Through A Digital Economy That Operates On Human Goodwill – October 1, 2017
  • Accenture Joins Hashed Health Blockchain Consortium to Develop and Implement Healthcare Industry Use Cases – October 1, 2017
  • Polymath Unveils Stacked Board of Advisors, First Token Issuers & a ‘GitHub for Lawyers’ – October 1, 2017
  • DECENT and Venaco Group Create a New Blockchain Joint Venture, Equidato Technologies AG – October 1, 2017
  • BankEx, the Decentralized Bank-as-a-Service Exchange, Welcomes Stanford and Maryland Academics as Advisors – September 30, 2017
  • Earth Token Wants to Save the Planet – September 29, 2017
  • Change Healthcare Introduces Enterprise Blockchain For Healthcare – September 29, 2017
  • Helperbit enables Bank Card donations with Blockchain traceability – September 29, 2017
  • South Korea Bans Initial Coin Offerings – Plans to Crack Down on Trading – September 29, 2017
  • Australian Regulators Vow to Work with Industry for ICOs – September 29, 2017
  • ICO Market Transformed by ATS Security Token Joint Venture Forged by tZERO, RenGen and the Argon Group – September 27, 2017
  • Backed by the Founder of Mozilla and CEO of Brave, SPiCE VC Is Launching A Fully Regulated Blockchain VC – September 27, 2017
  • Spectral And Alliander Launch Blockchain-based Renewable Energy Sharing Token – September 27, 2017
  • Munchee Announces The First Decentralized Food Review And Social Platform – September 27, 2017
  • Shapeshift rival, Flyp.me launches accountless crypto exchange with 169 trading pairs and 50% profit sharing – September 27, 2017
  • Oldham-based Energi Mine set to become first UK business outside London to raise funds through a Token Sale – September 27, 2017
  • Snip Partners with Bancor and Matchpool After Extremely Successful Presale Campaign – September 27, 2017
  • A new player enters the field of cryptocurrency marketplaces in October 2017 – September 27, 2017
  • Unikrn Raised $15 Million in Token Pre-Sale for esports Cryptocurrency From Mark Cuban, Blockchain Capital, Pantera Capital, CoinCircle and More – September 27, 2017
  • AB-CHAIN’s Cryptocurrency Makes Advertising Easy – September 25, 2017
  • Gibraltar Jumps on Regulatory Bandwagon – Issues Consumer Warning on ICOs – Token Sales – But Gives Green Light – September 24, 2017
  • From the Creator of ICOs – J.R. Willett Designs Uptoken – To Accelerate Expansion Of Global Crypto ATM Network – September 23, 2017
  • Art Provenance Platform ARTEX Launching Token Sale – September 23, 2017
  • Students Train for Blockchain Jobs at Coding and Cryptocurrencies Summer Course in Greece – September 23, 2017
  • Central Banks are Trialling Blockchain, Cambridge Study Shows – September 23, 2017
  • Blockchain Conquering Esports Industry – September 22, 2017
  • Russian-based Startup LavkaLavka Plan to Disrupt Global Eco Farming and Organic Food Retail Sector with BioCoin – September 22, 2017
  • Slack Out, Rocket.chat In – Blockchain Community Leaders Aragon Lead Industry Exodus Amid Marked Increase In Phishing Scams – September 22, 2017
  • Swiss Supply Chain Startup AMBROSUS Launches Token Generation Event – September 22, 2017
  • Codemojo (Backed by PayPal Incubator) is launching its ICO to Mobilize $360 Bn worth of Reward Points Globally – September 22, 2017
  • Investment into Blockchain start-ups set to hit $3bn in 2017 – September 22, 2017
  • Opporty Announces ICO and Token Sale Starting October 18th 2017 – September 21, 2017
  • Medicalchain To Speak At The Upcoming Financial Times Digital Health Summit On Oct. 12, 2017 – September 21, 2017

View All Articles

advertisement