With Blockchain came Bitcoin, which spawned Ethereum, this led to some other major coins either being born or to be born in the crypto space. As this ecosystem has developed, however, there has been a boom in more cryptocurrencies being created; the boom of the OIC

While more and more companies are participating in the OIC as a fundraising tool and are attracting even more attention. the attention of individuals and investors, governments and regulators are starting to notice. The problem is that these hitherto unregulated investment opportunities are essentially created without any guarantee for investors. They are mainly presented as promises in a white paper to solve a particular problem with Blockchain's power. However, keeping them to these promises has not always worked.

For regulators and governments, these investment opportunities often have the mark of dangerous scams and are primarily viewed with suspicion. This has led to a need for regulation and safeguards for individuals investing in them. The regulation of these OICs comes mainly from governments around the world, but they have followed no one's precedent, in fact, shared opinion among nations over the entire space cryptocurrency saw a divided approach to regulate them.

Because ICOs are still a new phenomenon for many regulators, the laws and rules on how to govern and regulate them are still being formulated and deployed. In fact, some governments have only recently made a public statement or warning about them. Some countries have been proactive and have presented their decision on country offices – in a positive or negative light. Although there are also those who are developing their regulations as they continue to learn about the technology that underlies them and what the ICOs mean for them. their citizens.

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Loan and Regulated

Some countries have quickly caught up with the ICOs and made their decisions about how they will operate at the state border, there are some that they have outright banished them, and there are some who have established precise rules and laws to which they must conform

China

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One of the most publicized regulations, and this time in a negative way, ICOs were the way China handled these fundraising methods. The Chinese government proclaimed a general ban on ICOs last year, which played its part in diving the price of bitcoin and other cryp

the The ban was implemented by the People's Bank of China and targeted all businesses and individuals. It was also extreme that all those who had completed their funding cycles were sentenced to repay the funds.

South Korea

While there were rumors of a cryptocurrency ban in another major Asian cryptocurrency center, the South Koreans officially banned ICOs. The South Korean Financial Services Commission explained its decision saying it was intended to protect investors from the growing risk of ICO scams and fraud.

Russia

Russia is another country that has taken online approach to both cryptocurrencies and ICOs. As regards the regulation of the latter, it is still not finalized and complete, but a number of orders have been established by the Kremlin. These orders affect things like the registration of altcoins, taxation, as well as the enforcement of securities laws. But the real laws of regulation are established for the month of March of this year.

Australia

As one of the first nations to institute genuine ICO regulations, Australia ensured them to keep them in line and protect them. citizens. Australian regulators reacted at the end of September when their Australian Securities and Investment Commission set the rules.

The Australians' approach is to establish clear guidelines on how to operate within the Australian regulatory framework. the development of new financial business models. Ultimately, it is a positive framework for country offices, but it keeps them in line with the existing legislative framework to protect citizens from fraud or fraudulent ICOs

] Gibraltar

The coast of Spain has become one of the last countries to develop its own regulation of the ICO. The Government of Gibraltar and its Financial Services Commission (FSC) are developing their bill to regulate the promotion, sale and distribution of digital tokens. One of the key concepts of this draft regulation will be a new idea that will see the introduction of the concept of "authorized sponsor", which is supposed to be "responsible for complying with disclosure rules and financial crime" .

Abu Dhabi (UAE)

The emirate of Abu Dhabi United Arab Emirates also announced plans for the regulation of ICO recently with the Authority of Financial Services Regulation (FSRA) wishing to cooperate with qualified institutions and individuals involved in cryptocurrency. industry, according to an announcement. Abu Dhabi's global marketplace recognizes the global demand for digital currencies, stating that: "virtual currencies, while lacking legal tender, are gaining global interest as a means of exchanging goods and services . "

US

Due to the size of the cryptocurrency market in the United States and the growth of IFAs in the country, the government and especially the SEC had to adopt a rather fast regulation and severe. However, just as there are different approaches across countries, each state also has different ways of managing country offices. The SEC, as the federal agency, however, believes for the most part that AITs should be considered securities.

For this purpose, there is no prohibition or general blocking, but IFAs must be registered and licensed. with the SEC if they want to sell these assumed titles. Recently, during a Senate debate, the SEC alluded to even tougher regulations for ICOS. SEC Chairman Jay Clayton noted that every OIC token that the SEC has seen so far is considered safe.

Adjustment under current rules

that IFAs must be reviewed by their regulatory agencies. In addition, some of them decided to keep their policies online while defining their approach. Because IFAs are unprecedented in terms of fundraising, security, and means of obtaining capital, governments have instead sought to integrate them into existing laws and regulations.

Canada

Last In August, the Canadian Securities Administrators (CSA) issued a statement that trading companies would enter into securities legislation, but they also requested that a category be considered a security. Essentially, it was a call for those looking to launch an ICO to pass the CSA before moving forward, letting them take it on a case by case basis.

"Any company that is considering raising capital through an OIC should consider whether it's a title. also contact their local securities regulator, "he read.

Germany

Germany is another country that has not yet directly regulated the ICOs. adhere to existing legislation, including the Bank Act, the Investment Act, the Securities Industry Act, the Payment Services Supervision Act and the Prospectus Acts. They even went so far as to issue a warning but there are risks in IFAs

"Due to the lack of legal requirements and transparency rules, consumers are left to their own devices when it comes to checking the identity, reputation and creditworthiness of the token provider, as well as understanding and evaluating the It can not be guaranteed that personal data will be protected in accordance with German standards. "

Singapore

Considered a potential stronghold for ICOs and I & # 39; In general, there have been a number of OICs that have proved very safe, especially if we consider the position of China and other countries of the world. Far East. Their approach has given advice right now because they are also developing their own position. Last November, the Monetary Authority of Singapore proposed a guide to IFAs, which outlines how these pieces should be dealt with under current securities laws.

The most recent word about IFAs in the country is that they will not be banned and that they do not feel that there are risks. MAS has studied these developments closely and the potential risks they pose. "At the present time, there is no solid case for banning cryptocurrency trading here," said Deputy Prime Minister

European Union

Within the European Union, bring the ICOs into compliance with the legislation in force. The main process to follow is to allow country offices to operate within the union, provided that they adhere to anti-money laundering policies / Know your client (AML / KYC ). However, like many countries in this category, the European Securities and Markets Authority has stated that they represented a high risk for investors.

Issue a Warning

There are not many countries that have not reiterated an answer "approach with caution" when it was questioned about IFAs. This is usually the first port of call for regulators who admit that they need to know more about the functioning of country offices in their countries.

It is understandable that they expect ICAs to operate within the limits of their current legislation. If they decide to categorize them as titles, say they follow these rules. There are some countries that have been largely non-interventionist, offering only a warning or advice on how to handle ICOS. This libertarian approach seems to be primarily a starting point before the regulation comes into force, in most cases.

Japan

Japan has taken one of the most important steps to legitimize Bitcoin back in 2016. However, with respect to ICOs, Japan does not not taken many important steps to control or regulate it. Japan has adopted a wait and see approach to the OIC market by presenting a warning to investors. The financial services agency also admitted that she was turning to international trends on this regulatory front

Malaysia

In September of last year, the Malaysia Securities Commission sent its own press release asking investors to take the lead in their warning when they look into IFAs. The Malaysian regulator has also warned investors "to be aware of the potential risks involved in ICO schemes."

Taiwan

In Taiwan, the chairman of the Financial Supervisory Commission Wellington Koo issued a statement in October on the ICOs, Blockchain and Fintech, but instead of being a warning , it was a positive position. Koo said that the Taiwan government had the intention to support the development and adoption of ICO, Blockchain technology and Cryptocurrencies, and treat them as lawful.

UK

The United Kingdom authorizes the operation of ICOs, but expects them to settle on existing financial laws and regulations. In addition to this, there were also severe warnings

The Financial Conduct Authority warned that IFAs are not regulated and potentially fraudulent, while the issuer of the 39; OIC may provide "unbalanced, incomplete or misleading" material to investors. , reported the Financial Times.