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Within the last 2 years, the concept of the ICO — essentially a crowdfunding sale supported by cryptocurrency tokens — has had a meteoric rise. Many companies used this new and novel way of
getting funding to start developing crypto and blockchain-related services and products, and ICOs were mostly unregulated when they began. But today, that has changed. In this article, we’ll
take a look at a few of the laws from around the world that affect ICOs, and what this means for companies who are launching — or have already launched — an ICO. MAJOR ICO LAWS AROUND THE
WORLD — UNDERSTANDING THE LEGAL LANDSCAPE Financial regulators have been catching up with ICO companies, and passing laws intended to regulate and control these “token sales” which are
considered to be unregistered securities, by some. Australia and Canada are both working on regulations that are specifically related to ICOs. France is also working on similar regulations
to govern how blockchain is used for capital-raising transactions In addition, China banned all ICOs within the country in 2017. South Korea also banned ICOs outright in September, 2017, and
Hong Kong announced that some ICOs may be considered securities, and are subject to the Securities and Futures Ordinance. In the United States, the regulations are less clear. The SEC has
announced that ICOs can have federal securities laws applied to them — but that each ICO token must be examined on a case-by-case basis, to see which ones will be determined to be
securities. ICOs found to be securities that are in violation of SEC regulations may face steep penalties. WHAT DOES THIS MEAN FOR ICO COMPANIES? Essentially, it means that you need to be
aware of the legal status of ICOs before you launch your campaign — and take proper steps to make sure that your ICO is, legally, above-board. This may mean that your ICO will have to be
registered with the SEC, and you may have to take steps towards KYC (Know Your Customer) and AML (Anti Money Laundering) compliance, to ensure that your legal bases are covered. Basically,
the “Wild West” period of crypto and ICOs is over. ICOs are now under increased scrutiny, and financial regulators are catching up — so unless you “play nice,” and adhere to financial
regulations, you could face steep penalties. PROTECT YOURSELF — KEEP YOUR ICO ABOVE-BOARD! Before you launch any kind of ICO in today’s landscape, we recommend you consult with lawyers and
financial professionals to make sure that you’re doing so legally. Otherwise, you could risk steep fines and penalties — both from the United States, and from regulators in other countries.
We are offering 1 month of Free KYC for all companies, read more here: https://verifer.io/kyc_1month_campaign . Let’s discuss on any of our social media channels or telegram:
https://verifer.io/ https://twitter.com/Verifer_io https://medium.com/@Verifer https://www.facebook.com/Verifer.io https://t.me/globalspydiscussion