European Union

ICOs are allowed, given they are in adherence to Anti-Money Laundering/Know Your Customer (AML/KYC) policies and to required business regulations and licenses, per the ICO’s business function.

On November 13, 2017, the European Securities and Market Authority took a stricter stance on ICOs, however, declaring that ICOs represent a high risk to investors and requiring firms dealing with ICOs to meet relevant regulatory requirements. This suggests that the EU is ready to embrace America’s position on ICOs, which is a reversal of the Union’s previous position.

Canada

The Canadian Securities Administrators have ruled that ICOs and altcoins are securities, subject to regulations on a case-by-case basis. The Canadian authorities have developed a “regulatory sandbox” for the purposes of regulating fintech projects that would not normally fit in the national regulatory scheme, such as ICOs.

China

ICOs are banned for all businesses and individuals by order of the People’s Bank of China. Chinese ICOs that have completed their funding cycles have been requested to refund any altcoins raised. The PBoC has indicated it will investigate any company or individual found to be in violation of its ruling.

Estonia

Estonia is currently considering starting its own ICO to raise funds. However, the Eurozone rule on nation states not having their own currencies continues to split opinions about the possibility of this happening.

Germany

Germany has no specific regulations for ICOs, but expect ICOs to adhere to existing regulations, including those encapsulated in the Banking Act, Investment Act, Securities Trading Act, Payment Services Supervision Act, and Prospectus Acts.

However, the Federal Financial Supervisory Authority has issued a warning regarding the risks of ICO investments. Per the statement, “Due to the lack of legal requirements and transparency rules, consumers are left on their own when it comes to verifying the identity, reputability, and credit standing of the token provider and understanding and assessing the investment on offer. It can also not be guaranteed that personal data will be protected in accordance with German standards.”

Israel

The Israeli Securities Authority is scheduled to report on whether ICOs and altcoins should be regulated on December 31, 2017.

There are positive signs, however, that Israel may be warming up to the idea of ICO crowdfunding.

Japan

The Financial Services Agency is looking at regulations that may help to strengthen AML/KYC protections for altcoins.

There is open fear that a potential crackdown on altcoins may be on the horizon, with the Financial Services Agency following international trends by issuing an investor warning on ICOs.

Russia

The Kremlin issued five orders in October 2017, requiring altcoin miner registration and taxation, the application of securities laws to ICOs, and the use of altcoins to create a “single payment space” in the Eurasian Economic Union to oppose the Eurozone.

Singapore

In November, the Monetary Authority of Singapore offered a guide on Digital Token Offerings, which indicates how altcoins should be treated under current securities laws. The new guidance dictates that any ICO or altcoin that are “capital market products” under the Securities and Futures Act can be regulated under the MAS. This includes altcoins that either infer an ownership interest in a corporation or product, debt, or a share in an investment scheme.

Switzerland

Recent attempts to regulate ICOs have failed, but the need to codify protections may reignite the regulation efforts. The Swiss Financial Market Supervisory Authority (FANMA) has started to examine ICOs for possible breaches of securities laws, which may be the first signs of a new wave of campaigning for regulatory oversight. Regulations are not thought, however, to be able to stop the current momentum to incorporate ICOs into Swiss culture.

United Kingdom

Like most other nations, the UK has issued an investor warning on the unregulated nature of ICOs. The Financial Conduct Authority argues that even if the ICO is acting in good faith, investors still stand a good chance of losing their entire investment. “Typically ICO projects are in a very early stage of development and their business models are experimental,” the FCA said.

The UK recognizes altcoins as “private currency,” similar to “Disney Dollars” at Disney properties. Currently, ICO operators are free to interpret existing laws and regulations as they see fit for their own properties. However, the UK is testing out ICOs and altcoins in its “regulatory sandbox”; new regulations may be released soon.

United States

ICO rules vary widely from state to state, from no regulations at all in some states to regulations requiring deposits in equal to or in excess of all local transactions to regulations requiring a license for businesses to engage in altcoin activities. On the federal level, there are no current regulations banning ICOs specifically, although ICOs are expected to be registered and licensed the same as if they were not ICOs. This includes registering with the SEC if the ICO is to sell or trade securities. The SEC has recently found that some altcoins may be a security, and as such, may be subject to SEC’s ruling in the future. Some SEC commissioners hold the position that most ICOs are securities and should be treated as such. ICOs are expected to adhere to AML/KYC practices. Failure to adhere to these practices may leave an ICO open to legal action or possible seizure.

The United States has also moved to recognize celebrity endorsements of ICOs to be illegal unless all compensation involved is disclosed.

Gibraltar (UK)

Regulators are planning to offer regulations for ICOs by January 2018 in hopes of permanently codifying legal protections for the altcoins.

Isle of Man(UK)

The Isle of Man has indicated that it is seeking to forge regulations in the future that will establish and protect ICOs’ legal status.

South Korea

South Korea has banned all ICOs in the country on September 29. The Financial Services Commission cited the growing risk of scams for being the reason behind the crackdown.

Thailand

The Securities and Exchange Commission has released a statement paper, welcoming the use of altcoins, but leaving open the possibility of regulating altcoins thought to be securities.

Hong Kong (China)

Regulators have indicated that certain altcoins might be securities and should be treated as such.

Philippines

Regulators have recognized Bitcoin as a valid form of remittance payment. However, the country also feels that regulations addressing AML/KYC protections may also be needed. Additional, companies offering exchange services are now required to register.

Australia

One of the first countries to formally launch ICO regulations, Australia requires ICOs that involve combined investment to adhere to the Corporations Act, to keep track of those shares (if the ICO issues shares) and to issue a disclosure document and acquire a financial services license if the ICO offers financial advice to customers.

However, Australia has issued draft laws that would allow the establishment of a regulatory sandbox for FinTech startups that would allow them to operate without being fully licensed.