{"id":1370,"date":"2019-10-14T21:37:28","date_gmt":"2019-10-14T21:37:28","guid":{"rendered":"http:\/\/dev.coindataflow.com\/clue\/?p=1370"},"modified":"2021-04-23T20:38:14","modified_gmt":"2021-04-23T20:38:14","slug":"what-is-an-ico","status":"publish","type":"post","link":"https:\/\/coindataflow.com\/clue\/what-is-an-ico","title":{"rendered":"What Is An ICO &#8211; Initial Coin Offering Meaning &#8211; The Best Full 2021 Guide"},"content":{"rendered":"\n<p>This\narticle is a complete guide and answer to the question of what is an initial\ncoin offering. If you are interested in digital investment, welcome to our\nreview.<\/p>\n\n\n\n<p>ICO Initial Coin Offering is a digital-analog of the issue of shares of ordinary companies in the digital asset market. The development company launches the project and issues a certain amount of coins. They are acquired by investors as futures, thereby financing a startup.<\/p>\n\n\n\n<!--more-->\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_11 counter-hierarchy counter-decimal ez-toc-transparent\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#The-basics-of-an-ICO\" title=\"The basics of an ICO\">The basics of an ICO<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#History-of-an-ICO\" title=\"History of an ICO\">History of an ICO<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Tokens-=-ICO-Cryptocurrency\" title=\"Tokens = ICO\nCryptocurrency?\">Tokens = ICO\nCryptocurrency?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Security-tokens\" title=\"Security tokens\">Security tokens<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Utility-tokens\" title=\"Utility tokens\">Utility tokens<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#ICO-Benefits-What%E2%80%99s-in-it-for-the-Investor\" title=\"ICO Benefits: What&#8217;s in it\nfor the Investor?\">ICO Benefits: What&#8217;s in it\nfor the Investor?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#The-Most-Successful-ICOs-of-All-Time\" title=\"The Most Successful ICOs\nof All Time\">The Most Successful ICOs\nof All Time<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#How-to-Find-ICOs\" title=\"How to Find ICOs\">How to Find ICOs<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Risks-and-Criticisms-of-the-ICO-Space\" title=\"Risks and Criticisms of\nthe ICO Space\">Risks and Criticisms of\nthe ICO Space<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#How-to-Identify-Cryptocurrency-and-ICO-Scams\" title=\"How to Identify\nCryptocurrency and ICO Scams\">How to Identify\nCryptocurrency and ICO Scams<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#What-Makes-for-a-Successful-ICO\" title=\"What Makes for a\nSuccessful ICO?\">What Makes for a\nSuccessful ICO?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#What-is-a-reverse-ICO\" title=\"What is a reverse ICO?\">What is a reverse ICO?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#What-is-DAO\" title=\"What is DAO?\">What is DAO?<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Legality-of-ICOs\" title=\"Legality of ICOs\">Legality of ICOs<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-basics-of-an-ICO\"><\/span>The basics of an ICO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand\nwhat is an ICO, you need to know how investors are attracted to finance\nprojects. To do this, startup organizers create a business plan. In it they\nindicate:<\/p>\n\n\n\n<ul><li>Why do we need a project;<\/li><li>An approximate model of project development;<\/li><li>How much investors need to invest in business development;<\/li><li>What kind of profit the company and investors will receive as a result.<\/li><\/ul>\n\n\n\n<p>When an ICO\ncryptocurrency occurs, developers indicate in the charter documents how many\ncoins they have left, how much currency investors will control, and how many\ncoins ordinary users can get or buy.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"908\" height=\"905\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Example-ICO-Metrics.png\" alt=\"Example ICO Metrics\" class=\"wp-image-1488\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Example-ICO-Metrics.png 908w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Example-ICO-Metrics-150x150.png 150w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Example-ICO-Metrics-300x300.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Example-ICO-Metrics-768x765.png 768w\" sizes=\"(max-width: 908px) 100vw, 908px\" \/><figcaption>Example ICO Metrics<\/figcaption><\/figure><\/div>\n\n\n\n<p>Initial\ncoin offerings are similar to a stock issue. If you managed to collect the\nrequired amount, the project develops further.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"History-of-an-ICO\"><\/span>History of an ICO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mastercoin first conducted initial coin offering (ICO) for the <a href=\"\/clue\/how-to-buy-ethereum\">Ethereum project<\/a> in 2013. In 2014, the platform developers organized a free sale of tokens to everyone.<\/p>\n\n\n\n<p>The ICO\nmarket developed very actively in 2017. By the end, the total capitalization\nfrom all projects amounted to 2.3 billion USD. At the same time, about 50\nstartups appeared every month, which offered ICO coins.<\/p>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video controls src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-Token-Sales.mp4\"><\/video><\/figure>\n\n\n\n<p>Not all ICO\nofferings have been successful. By the beginning of 2018, almost half of the\nprojects had closed.<\/p>\n\n\n\n<p><a href=\"https:\/\/coindataflow.com\/en\/currency\/ethereum\" class=\"rank-math-link\">Ethereum<\/a> is still the leading ICO platform. The tokens are ERC-20 compliant. And their volume is about 80% of the total number of various ICO tokens.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"722\" height=\"430\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICOs-by-platform.png\" alt=\"ICOs by platform\" class=\"wp-image-1492\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICOs-by-platform.png 722w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICOs-by-platform-300x179.png 300w\" sizes=\"(max-width: 722px) 100vw, 722px\" \/><figcaption>ICOs by platform (source: <a href=\"https:\/\/icobench.com\/\" rel=\"nofollow noopener\" target=\"_blank\">icobench<\/a>)<\/figcaption><\/figure><\/div>\n\n\n\n<p>Popular\nsocial networks and search engines such as Facebook and Google first banned\nupcoming cryptocurrency ICOS ads. Then, in 2018, Facebook lifted the ban.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Facebook-chess-game.png\" alt=\"Facebook chess game\" class=\"wp-image-1493\" width=\"850\" height=\"464\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Facebook-chess-game.png 728w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Facebook-chess-game-300x163.png 300w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Facebook chess game<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Tokens-=-ICO-Cryptocurrency\"><\/span>Tokens = ICO\nCryptocurrency?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ICO token or ICO funding is part of a specific network that helps to implement a particular idea. ICO tokens are generally needed to create various applications on <a href=\"\/clue\/what-is-blockchain\">Blockchain platforms<\/a>. An example is smart contracts on Ethereum.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Smart-Contract-e1570608594127-1024x1016.png\" alt=\"Ethereum Smart Contract\" class=\"wp-image-1498\" width=\"850\" height=\"845\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Smart-Contract-e1570608594127-150x150.png 150w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Smart-Contract-e1570608594127-300x298.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Smart-Contract-e1570608594127-768x762.png 768w\" sizes=\"(max-width: 850px) 100vw, 850px\" \/><figcaption>Ethereum Smart Contract<\/figcaption><\/figure><\/div>\n\n\n\n<p>So ICO token is not the same as <a href=\"\/clue\/what-is-cryptocurrency\">cryptocurrency<\/a>. Although some ICO blockchain projects are valuable not only in the developer&#8217;s system but are also used as a means of payment. Such successful ICOs (e.g. Bitcoin) have high prices and status of cryptocurrencies. These crypto projects invest not only developers but also traders.<\/p>\n\n\n\n<p>The US\nSecurities and Exchange Commission divided ICO tokens into two types:<\/p>\n\n\n\n<ul><li>Security tokens;<\/li><li>Service tokens.<\/li><\/ul>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Security-tokens\"><\/span>Security tokens<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Token ICOs\nare evaluated on several points of the Howey test:<\/p>\n\n\n\n<ol><li>Buy ICO, meaning finance investments?<\/li><li>Does investing in an ICO company benefit all participants?<\/li><li>Does the new ICO coin launch engage in advertising and promising profits?<\/li><\/ol>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"1024\" height=\"576\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Howey-Test-1024x576.png\" alt=\"Howey Test\" class=\"wp-image-1504\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Howey-Test-1024x576.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Howey-Test-300x169.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Howey-Test-768x432.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Howey-Test.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Howey Test<\/figcaption><\/figure><\/div>\n\n\n\n<p>If all\nquestions are answered positively, then the new cryptocurrency ICO is regarded\nas Security Tokens. They are subject to the influence of regulations since\ngovernments of the country consider a list of such cryptocurrency ICOs as ICO\ncompany securities.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Utility-tokens\"><\/span>Utility tokens<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the\nHowey test fails, new ICOs define as Utility Tokens. They work to pay start\nactions on a specific blockchain platform. You need such tokens for:<\/p>\n\n\n\n<ol><li>The rights to use the network;<\/li><li>Voting on network development issues.<\/li><\/ol>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"777\" height=\"544\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/FINMA-Roundtable-Presentation-on-ICOs.png\" alt=\"FINMA Roundtable Presentation on ICOs\" class=\"wp-image-1500\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/FINMA-Roundtable-Presentation-on-ICOs.png 777w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/FINMA-Roundtable-Presentation-on-ICOs-300x210.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/FINMA-Roundtable-Presentation-on-ICOs-768x538.png 768w\" sizes=\"(max-width: 777px) 100vw, 777px\" \/><figcaption><a href=\"https:\/\/www.finma.ch\/en\/~\/media\/finma\/dokumente\/dokumentencenter\/myfinma\/1bewilligung\/fintech\/20180321_ppt-ico-veranstaltung_en.pdf?la=en\" rel=\"nofollow noopener\" target=\"_blank\">FINMA<\/a> Roundtable Presentation on ICOs<\/figcaption><\/figure><\/div>\n\n\n\n<p>Now that\nwe&#8217;ve figured out the ICO definition, we&#8217;ll look at what options the ICO crowdsale\nand most successful ICOs can lead to.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"ICO-Benefits-What%E2%80%99s-in-it-for-the-Investor\"><\/span>ICO Benefits: What&#8217;s in it\nfor the Investor?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you invest in the ICO, it means that you are not getting any paper shares. In the case of ICO trading, the developer gives you access to the Blockchain. Most often, deposits are made in a popular digital currency, such as <a href=\"https:\/\/coindataflow.com\/en\/currency\/bitcoin\" class=\"rank-math-link\">Bitcoin<\/a> or Ether.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"308\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-process-vs-IPO-process-1024x308.png\" alt=\"ICO process vs IPO process\" class=\"wp-image-1524\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-process-vs-IPO-process-1024x308.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-process-vs-IPO-process-300x90.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-process-vs-IPO-process-768x231.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-process-vs-IPO-process.png 1202w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>ICO process vs IPO process (Source: <a href=\"https:\/\/www.oecd.org\/finance\/ICOs-for-SME-Financing.pdf\" rel=\"nofollow noopener\" target=\"_blank\">OECD<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>The initial\ncoin offering list is replenished with new companies because to make one of\nthem is very simple. For this purpose, there are online applications that\ngenerate new tokens. Therefore, contributions to ICOs are the riskiest. No one\nguarantees that the hottest offers to raise enough capital for development, as\nwell as that these assets will grow in value.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"1013\" height=\"569\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Estimates-of-ICO-Scams.png\" alt=\"Estimates of ICO Scams\" class=\"wp-image-1519\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Estimates-of-ICO-Scams.png 1013w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Estimates-of-ICO-Scams-300x169.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Estimates-of-ICO-Scams-768x431.png 768w\" sizes=\"(max-width: 1013px) 100vw, 1013px\" \/><figcaption>Estimates of ICO Scams (Source: <a href=\"https:\/\/www.oecd.org\/finance\/ICOs-for-SME-Financing.pdf\" rel=\"nofollow noopener\" target=\"_blank\">OECD<\/a>)<\/figcaption><\/figure><\/div>\n\n\n\n<p>While the\nfirst issue is valued at one amount, there is a chance that the cost of the\nproject will increase many times in the future (as happened with Bitcoin).\nThrough the growing popularity of the token, investors are hoping to get extra\nprofit on the difference in rates.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"1024\" height=\"742\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEO-Performance-2019-1024x742.png\" alt=\"IEO Performance 2019\" class=\"wp-image-1506\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEO-Performance-2019-1024x742.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEO-Performance-2019-300x217.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEO-Performance-2019-768x556.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>IEO Performance 2019<\/figcaption><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"552\" height=\"69\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ROI.png\" alt=\"ROI\" class=\"wp-image-1507\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ROI.png 552w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ROI-300x38.png 300w\" sizes=\"(max-width: 552px) 100vw, 552px\" \/><figcaption> Return on Investment (ROI)<\/figcaption><\/figure><\/div>\n\n\n\n<p>In 2017,\nthe number of successful startups amounted to 435 companies. At the same time,\ninvestors increased their capital by an average of 12.8 times. Therefore, in\n2018, investments in this area increased by almost 60% in the first few months.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"575\" height=\"579\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Raised-funds-and-Number-of-ICOs.png\" alt=\"Raised funds and Number of ICOs\" class=\"wp-image-1491\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Raised-funds-and-Number-of-ICOs.png 575w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Raised-funds-and-Number-of-ICOs-150x150.png 150w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Raised-funds-and-Number-of-ICOs-298x300.png 298w\" sizes=\"(max-width: 575px) 100vw, 575px\" \/><figcaption>Raised funds and Number of ICOs<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-Most-Successful-ICOs-of-All-Time\"><\/span>The Most Successful ICOs\nof All Time<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Evaluating,\nwell, ICO or not, financiers take into account how much investment the project\nattracted and what return the investors received. For example, among the latest\nbig projects, Ether ICO is considered one of the best.<\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube aligncenter wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Ethereum: the World Computer\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/j23HnORQXvs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><figcaption> Ethereum: the World Computer<\/figcaption><\/figure>\n\n\n\n<p>The\nplatform for decentralized applications raised $ 18 million in less than 1.5\nmonths. And the ETH token rose in price from 0.3 USD in 2014 to almost 475 USD\nin 2018.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"358\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Chart-1024x358.png\" alt=\"Ethereum Chart\" class=\"wp-image-1511\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Chart-1024x358.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Chart-300x105.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Chart-768x269.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Ethereum-Chart.png 1144w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Ethereum Chart<\/figcaption><\/figure>\n\n\n\n<p>The most\nsuccessful recent initiative was the development of a decentralized cloud\nstorage Filecoin. The project raised a record of $ 257 million per month in\n2017.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-Find-ICOs\"><\/span>How to Find ICOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To buy new digital coins, most often you need to pay for a transaction with popular cryptocurrencies. If the investor already has a <a href=\"\/clue\/best-bitcoin-wallets\">digital wallet<\/a> with the desired currency (which currency is required, the developer indicates in the offer). Next, we give an example action diagram:<\/p>\n\n\n\n<ol><li>On the official ICO page, read all the information in the technical document. Then go to the Participate section.<\/li><li>To register, the user must indicate the public address of his crypto wallet.<\/li><li>On the day the project is launched, go to the ICO issuing website and send the payment in crypto to the developer&#8217;s public address. Part of the new coins will go to your wallet in return.<\/li><li>Sometimes it is necessary to add a new token to the list of supported tokens of your wallet to be able to store and sell new funds.<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"989\" height=\"625\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/List-of-upcoming-ICO.png\" alt=\"List of upcoming ICO\" class=\"wp-image-1642\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/List-of-upcoming-ICO.png 989w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/List-of-upcoming-ICO-300x190.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/List-of-upcoming-ICO-768x485.png 768w\" sizes=\"(max-width: 989px) 100vw, 989px\" \/><figcaption>List of upcoming ICO (<a href=\"http:\/\/icodrops.com\" rel=\"nofollow noopener\" target=\"_blank\">icodrops.com<\/a>)<\/figcaption><\/figure>\n\n\n\n<p>You can find out about new launches and their exact data on the forums of investors or IT enthusiasts, for example, <a rel=\"noreferrer noopener nofollow\" aria-label=\"Reddit (opens in a new tab)\" href=\"https:\/\/www.reddit.com\/r\/icocrypto\/\" target=\"_blank\">Reddit<\/a>. Other sites even make lists with comparative characteristics of projects. If you are interested, visit:<\/p>\n\n\n\n<ul><li><a rel=\"noreferrer noopener nofollow\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/icodrops.com\/\" target=\"_blank\">Icodrops.com<\/a><\/li><li><a rel=\"noreferrer noopener nofollow\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/icobench.com\" target=\"_blank\">Icobench.com<\/a><\/li><li><a href=\"http:\/\/Icorating.com\" rel=\"nofollow noopener\" target=\"_blank\">Icorating.com<\/a><\/li><\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Risks-and-Criticisms-of-the-ICO-Space\"><\/span>Risks and Criticisms of\nthe ICO Space<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Public\nfinancial institutions like the SEC do not regulate ICOs, so investors take all\nthe risks. To protect your funds as much as possible, before buying a new\ntoken, analyze the following points:<\/p>\n\n\n\n<ul><li>The coin offered technical paper should be simple and straightforward, with clear short-term and long-term goals.<\/li><li>Developers should indicate all project participants, their legal addresses, a business plan with payback periods.<\/li><li>The legal status of ICOs should also be transparent to investors.<\/li><li>The developer must have an individual wallet with keys that are held by several holders to store the ICO. Ideally, the holder of at least one key should be the neutral side.<\/li><\/ul>\n\n\n\n<blockquote class=\"wp-block-quote\"><p> The SEC is actively protecting investors from unregistered or fraudulent ICOs, see examples of enforcement actions and trading suspensions&nbsp;<a href=\"https:\/\/www.sec.gov\/spotlight\/cybersecurity-enforcement-actions\" target=\"_blank\" rel=\"noopener\">here<\/a>. <\/p><\/blockquote>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"630\" height=\"1024\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Limitations-of-ICO-offerings-630x1024.png\" alt=\"Limitations of ICO offerings\" class=\"wp-image-1653\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Limitations-of-ICO-offerings-630x1024.png 630w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Limitations-of-ICO-offerings-185x300.png 185w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Limitations-of-ICO-offerings-768x1248.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Limitations-of-ICO-offerings.png 850w\" sizes=\"(max-width: 630px) 100vw, 630px\" \/><figcaption>Limitations of ICO offerings (Source: <a href=\"https:\/\/www.oecd.org\/finance\/ICOs-for-SME-Financing.pdf\" rel=\"nofollow noopener\" target=\"_blank\">OECD<\/a>) <\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-Identify-Cryptocurrency-and-ICO-Scams\"><\/span>How to Identify\nCryptocurrency and ICO Scams<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nSecurities and Exchange Commission (SEC) warns future investors against rash\ndecisions. You should beware of companies that advertise bonuses for new tokens\ntoo brightly, charge them a price. When scammers manage to attract enough\ncapital, they quickly sell coins and close the project.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"1024\" height=\"662\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Most-Profitable-Scams-in-2018-by-Type-1024x662.png\" alt=\"Most Profitable Scams in 2018 by Type\" class=\"wp-image-1644\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Most-Profitable-Scams-in-2018-by-Type-1024x662.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Most-Profitable-Scams-in-2018-by-Type-300x194.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Most-Profitable-Scams-in-2018-by-Type-768x497.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/Most-Profitable-Scams-in-2018-by-Type.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Most Profitable Scams in 2018 by Type (source: <a href=\"https:\/\/blog.chainalysis.com\/reports\/ethereum-scams\" rel=\"nofollow noopener\" target=\"_blank\">chainalysis.com<\/a>)<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-Makes-for-a-Successful-ICO\"><\/span>What Makes for a\nSuccessful ICO?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No one can\ngive a 100% guarantee for the success of each particular project. Although\ndevelopers will advertise their idea to investors. Signs of a legal and quality\nstartup can be:<\/p>\n\n\n\n<ul><li>The technical document in the public domain on the ICO website should have several levels of detail. A brief business plan with a description of the strategy and the timing of achieving goals should be complemented by a detailed description of the process of implementing the idea.<\/li><li>Public or well-known people among the organizers and project managers inspire more confidence.<\/li><li>Good reviews on investor forums from long-registered users with a reliable reputation add credibility to the project. Although this condition is not a guaranteed protection against fraud.<\/li><li>The company initiating the ICO must make its financial policy transparent to investors. The more documents the project management provides, the better.<\/li><li>Most reliable startups issue a limited number of coins that have a distribution plan between developers, partners, and investors. This approach helps to avoid excessive centralization if someone wants to buy more than half of the tokens.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"680\" height=\"367\" src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEOs-on-Binance.png\" alt=\"IEOs on Binance\" class=\"wp-image-1652\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEOs-on-Binance.png 680w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/IEOs-on-Binance-300x162.png 300w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><figcaption>IEOs on Binance<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-reverse-ICO\"><\/span>What is a reverse ICO?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The reverse\ninitial offer of coins is a way to attract new investors to companies that have\nlong been working in their niche and have a well-established distribution of\nproducts or a customer base.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-vs-IPO.png\" alt=\"ICO vs IPO\" class=\"wp-image-1531\" width=\"639\" height=\"747\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-vs-IPO.png 852w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-vs-IPO-257x300.png 257w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/ICO-vs-IPO-768x898.png 768w\" sizes=\"(max-width: 639px) 100vw, 639px\" \/><figcaption>ICO vs IPO  (Source: <a href=\"https:\/\/www.oecd.org\/finance\/ICOs-for-SME-Financing.pdf\" rel=\"nofollow noopener\" target=\"_blank\">OECD<\/a>)<\/figcaption><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"What-is-DAO\"><\/span>What is DAO?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A\ndecentralized autonomous organization (DAO) was created as a new business\nmodel. The project was based on the Ethereum platform. Blockchain did not\ndemand to attract and pay for the work of the staff of advisors and directors.\nHowever, the lack of attachment to any state makes legislative regulation of\nthe project impossible.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/DAO-attack.png\" alt=\"DAO attack\" class=\"wp-image-1656\" width=\"640\" height=\"399\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/DAO-attack.png 640w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/10\/DAO-attack-300x187.png 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption>DAO attack<\/figcaption><\/figure><\/div>\n\n\n\n<p>The DAO\nraised a record amount of funds using crowdfunding, but in 2016, as a result of\na hacker attack, one-third of all money was stolen, which resulted in a hard\nfork of Ethereum.<\/p>\n\n\n\n<p>Large cryptocurrency exchanges (<a href=\"https:\/\/coindataflow.com\/en\/exchange\/kraken\" class=\"rank-math-link\">Kraken<\/a>, <a href=\"https:\/\/coindataflow.com\/en\/exchange\/poloniex\" class=\"rank-math-link\">Poloniex<\/a>) do not allow DAO to trade.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Legality-of-ICOs\"><\/span>Legality of ICOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Initially,\nICOs were seen as digital, and not as financial assets. Therefore, this market\nwas not regulated, and this caused a wave of fraud. Now monetary regulatory\nauthorities (CFTC and SEC) define most ICOs as securities. However, each\nproject is individually evaluated according to several criteria.<\/p>\n\n\n\n<p>By the\ndecision of the SEC, all coin offerings were divided into Utility and Security\nunits. It depends on whether the token provides only access to the Blockchain\nplatform or makes it possible to speculate on price differences.<\/p>\n\n\n\n<div id=\"supsystic-table-10_70074\" class=\"supsystic-tables-wrap \" style=\" visibility: hidden; \" ><table id=\"supsystic-table-10\" class=\"supsystic-table compact paragraphMode border stripe lightboxImg cell-border\" data-id=\"10\" data-view-id=\"10_70074\" data-title=\"Selected regulatory responses to ICO worldwide_Clone\" data-currency-format=\"$1,000.00\" data-percent-format=\"10.00%\" data-date-format=\"DD.MM.YYYY\" data-time-format=\"HH:mm\" data-features=\"[&quot;after_table_loaded_script&quot;,&quot;auto_width&quot;]\" data-search-value=\"\" data-lightbox-img=\"\" data-head=\"on\" data-head-rows-count=\"1\" data-pagination-length=\"50,100,All\" data-auto-index=\"off\" data-searching-settings=\"{&quot;columnSearchPosition&quot;:&quot;bottom&quot;,&quot;minChars&quot;:&quot;0&quot;}\" data-lang=\"default\" data-override=\"{&quot;emptyTable&quot;:&quot;&quot;,&quot;info&quot;:&quot;&quot;,&quot;infoEmpty&quot;:&quot;&quot;,&quot;infoFiltered&quot;:&quot;&quot;,&quot;lengthMenu&quot;:&quot;&quot;,&quot;search&quot;:&quot;&quot;,&quot;zeroRecords&quot;:&quot;&quot;,&quot;exportLabel&quot;:&quot;&quot;,&quot;file&quot;:&quot;default&quot;}\" data-merged=\"[]\" data-responsive-mode=\"2\" data-from-history=\"0\" ><thead><tr><th data-cell-id=\"A1\" data-x=\"0\" data-y=\"1\" data-db-index=\"1\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Country\" data-order=\"Country\" >Country <\/th><th data-cell-id=\"B1\" data-x=\"1\" data-y=\"1\" data-db-index=\"1\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Authority\" data-order=\"Authority\" >Authority <\/th><th data-cell-id=\"C1\" data-x=\"2\" data-y=\"1\" data-db-index=\"1\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Action\" data-order=\"Action\" >Action <\/th><th data-cell-id=\"D1\" data-x=\"3\" data-y=\"1\" data-db-index=\"1\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Description\" data-order=\"Description\" >Description <\/th><\/tr><\/thead><tbody><tr ><td data-cell-id=\"A2\" data-x=\"0\" data-y=\"2\" data-db-index=\"2\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"France\" data-order=\"France\" >France <\/td><td data-cell-id=\"B2\" data-x=\"1\" data-y=\"2\" data-db-index=\"2\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"AMF&lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; French National Assembly\" data-order=\"AMF&lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; French National Assembly\" >AMF<br \/><br \/><br \/><br \/><br \/><br \/><br \/> French National Assembly <\/td><td data-cell-id=\"C2\" data-x=\"2\" data-y=\"2\" data-db-index=\"2\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Investor&lt;br \/&gt; warning + Consultation paper (26\/10\/17) &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; PACTE Legislation (09\/10\/18)\" data-order=\"Investor&lt;br \/&gt; warning + Consultation paper (26\/10\/17) &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; PACTE Legislation (09\/10\/18)\" >Investor<br \/> warning + Consultation paper (26\/10\/17) <br \/><br \/><br \/><br \/><br \/> PACTE Legislation (09\/10\/18) <\/td><td data-cell-id=\"D2\" data-x=\"3\" data-y=\"2\" data-db-index=\"2\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Under French law, generally no specific regulation addresses this new way of raising funds and a large majority of ICOs may not be under regulation of the French AMF. However, a case by case analysis is required for each ICO to determine if existing rules are applicable.&lt;br \/&gt; &lt;br \/&gt; AMF calls for stakeholders to answer its consultation paper which considers three possible regulatory approaches:&lt;br \/&gt; i. a best practice code ;&lt;br \/&gt; ii. a prospectus regulation ; or&lt;br \/&gt; iii. an ad hoc regime.&lt;br \/&gt; &lt;br \/&gt; AMF warns the public that ICO are risky and dedicated to an informed public:&lt;br \/&gt; &lt;a href=&quot;http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true&quot; target=&quot;_blank&quot;&gt;http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; Article 26 of the PACTE law provides the possibility for token issuers to apply for a visa from the AMF, prior to any offering of tokens to the public.&lt;br \/&gt; The French regulatory framework will be based on a few basic rules:&lt;br \/&gt; \u2022 Existence of a legal entity established or registered in France;&lt;br \/&gt; \u2022 Monitoring and safeguarding of the assets collected as part of the offer;&lt;br \/&gt; \u2022 AML\/CFT controls at the time of the public offering of tokens;&lt;br \/&gt; \u2022 Investors will therefore have access to a &quot;white list&quot; by the AMF gathering reliable information on the ecosystem&#039;s serious\/legitimate players.&lt;br \/&gt; The PACTE law was voted in first reading by the French National Assembly and will be examined by the Senate in January 2019.\" data-order=\"Under French law, generally no specific regulation addresses this new way of raising funds and a large majority of ICOs may not be under regulation of the French AMF. However, a case by case analysis is required for each ICO to determine if existing rules are applicable.&lt;br \/&gt; &lt;br \/&gt; AMF calls for stakeholders to answer its consultation paper which considers three possible regulatory approaches:&lt;br \/&gt; i. a best practice code ;&lt;br \/&gt; ii. a prospectus regulation ; or&lt;br \/&gt; iii. an ad hoc regime.&lt;br \/&gt; &lt;br \/&gt; AMF warns the public that ICO are risky and dedicated to an informed public:&lt;br \/&gt; &lt;a href=&quot;http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true&quot; target=&quot;_blank&quot;&gt;http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; Article 26 of the PACTE law provides the possibility for token issuers to apply for a visa from the AMF, prior to any offering of tokens to the public.&lt;br \/&gt; The French regulatory framework will be based on a few basic rules:&lt;br \/&gt; \u2022 Existence of a legal entity established or registered in France;&lt;br \/&gt; \u2022 Monitoring and safeguarding of the assets collected as part of the offer;&lt;br \/&gt; \u2022 AML\/CFT controls at the time of the public offering of tokens;&lt;br \/&gt; \u2022 Investors will therefore have access to a &quot;white list&quot; by the AMF gathering reliable information on the ecosystem&#039;s serious\/legitimate players.&lt;br \/&gt; The PACTE law was voted in first reading by the French National Assembly and will be examined by the Senate in January 2019.\" >Under French law, generally no specific regulation addresses this new way of raising funds and a large majority of ICOs may not be under regulation of the French AMF. However, a case by case analysis is required for each ICO to determine if existing rules are applicable.<br \/><br \/> AMF calls for stakeholders to answer its consultation paper which considers three possible regulatory approaches:<br \/> i. a best practice code ;<br \/> ii. a prospectus regulation ; or<br \/> iii. an ad hoc regime.<br \/><br \/> AMF warns the public that ICO are risky and dedicated to an informed public:<br \/><a href=\"http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true\" target=\"_blank\" rel=\"nofollow noopener\">http:\/\/www.amf-france.org\/en_US\/Publications\/Consultations-publiques\/Annee-en-cours?langSwitch=true<\/a><br \/><br \/> Article 26 of the PACTE law provides the possibility for token issuers to apply for a visa from the AMF, prior to any offering of tokens to the public.<br \/> The French regulatory framework will be based on a few basic rules:<br \/> \u2022 Existence of a legal entity established or registered in France;<br \/> \u2022 Monitoring and safeguarding of the assets collected as part of the offer;<br \/> \u2022 AML\/CFT controls at the time of the public offering of tokens;<br \/> \u2022 Investors will therefore have access to a \"white list\" by the AMF gathering reliable information on the ecosystem's serious\/legitimate players.<br \/> The PACTE law was voted in first reading by the French National Assembly and will be examined by the Senate in January 2019. <\/td><\/tr><tr ><td data-cell-id=\"A3\" data-x=\"0\" data-y=\"3\" data-db-index=\"3\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Germany\" data-order=\"Germany\" >Germany <\/td><td data-cell-id=\"B3\" data-x=\"1\" data-y=\"3\" data-db-index=\"3\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"BaFin\" data-order=\"BaFin\" >BaFin <\/td><td data-cell-id=\"C3\" data-x=\"2\" data-y=\"3\" data-db-index=\"3\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Consumer&lt;br \/&gt; warning (9\/11\/17)&lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; Expert article on ICOs (15\/11\/17)\" data-order=\"Consumer&lt;br \/&gt; warning (9\/11\/17)&lt;br \/&gt; &lt;br \/&gt; &lt;br \/&gt; Expert article on ICOs (15\/11\/17)\" >Consumer<br \/> warning (9\/11\/17)<br \/><br \/><br \/> Expert article on ICOs (15\/11\/17) <\/td><td data-cell-id=\"D3\" data-x=\"3\" data-y=\"3\" data-db-index=\"3\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"BaFin wishes to point out that the acquisition of cryptocurrency coins as part of so-called ICOs may result in substantial risks for investors. ICOs are a highly speculative form of investment. Investors should therefore be prepared for the possibility of losing their investment completely.&lt;br \/&gt; &lt;br \/&gt; As is the case with most new trends, the high level of public interest in ICOs is also attracting fraudsters.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html&quot; target=&quot;_blank&quot;&gt;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; Based on the specific formulation of the contract for each ICO, BaFin decides on a case-by-case basis whether the offeror is required to obtain authorisation pursuant to the German Banking Act (KWG), Investment Code (KAGB), Payment Services Supervision Act (ZAG) or Insurance Supervision Act (VAG) and whether they must fulfil prospectus requirements. Generally speaking, cryptocurrency tokens constitute financial instruments (units of account) within the meaning of the KWG. Therefore, undertakings and persons that arrange the acquisition of tokens, sell or purchase tokens on a commercial basis, or operate secondary market platforms on which tokens are traded are generally required to obtain authorisation from BaFin in advance.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html&quot; target=&quot;_blank&quot;&gt;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html&lt;\/a&gt;\" data-order=\"BaFin wishes to point out that the acquisition of cryptocurrency coins as part of so-called ICOs may result in substantial risks for investors. ICOs are a highly speculative form of investment. Investors should therefore be prepared for the possibility of losing their investment completely.&lt;br \/&gt; &lt;br \/&gt; As is the case with most new trends, the high level of public interest in ICOs is also attracting fraudsters.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html&quot; target=&quot;_blank&quot;&gt;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; Based on the specific formulation of the contract for each ICO, BaFin decides on a case-by-case basis whether the offeror is required to obtain authorisation pursuant to the German Banking Act (KWG), Investment Code (KAGB), Payment Services Supervision Act (ZAG) or Insurance Supervision Act (VAG) and whether they must fulfil prospectus requirements. Generally speaking, cryptocurrency tokens constitute financial instruments (units of account) within the meaning of the KWG. Therefore, undertakings and persons that arrange the acquisition of tokens, sell or purchase tokens on a commercial basis, or operate secondary market platforms on which tokens are traded are generally required to obtain authorisation from BaFin in advance.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html&quot; target=&quot;_blank&quot;&gt;https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html&lt;\/a&gt;\" >BaFin wishes to point out that the acquisition of cryptocurrency coins as part of so-called ICOs may result in substantial risks for investors. ICOs are a highly speculative form of investment. Investors should therefore be prepared for the possibility of losing their investment completely.<br \/><br \/> As is the case with most new trends, the high level of public interest in ICOs is also attracting fraudsters.<br \/><a href=\"https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Meldung\/2017\/meldung_171109_ICOs_en.html<\/a><br \/><br \/> Based on the specific formulation of the contract for each ICO, BaFin decides on a case-by-case basis whether the offeror is required to obtain authorisation pursuant to the German Banking Act (KWG), Investment Code (KAGB), Payment Services Supervision Act (ZAG) or Insurance Supervision Act (VAG) and whether they must fulfil prospectus requirements. Generally speaking, cryptocurrency tokens constitute financial instruments (units of account) within the meaning of the KWG. Therefore, undertakings and persons that arrange the acquisition of tokens, sell or purchase tokens on a commercial basis, or operate secondary market platforms on which tokens are traded are generally required to obtain authorisation from BaFin in advance.<br \/><a href=\"https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/EN\/Fachartikel\/2017\/fa_bj_1711_ICO_en.html<\/a><\/td><\/tr><tr ><td data-cell-id=\"A4\" data-x=\"0\" data-y=\"4\" data-db-index=\"4\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"United Kingdom\" data-order=\"United Kingdom\" >United Kingdom <\/td><td data-cell-id=\"B4\" data-x=\"1\" data-y=\"4\" data-db-index=\"4\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"FCA\" data-order=\"FCA\" >FCA <\/td><td data-cell-id=\"C4\" data-x=\"2\" data-y=\"4\" data-db-index=\"4\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Investor&lt;br \/&gt; warning (12\/09\/17)\" data-order=\"Investor&lt;br \/&gt; warning (12\/09\/17)\" >Investor<br \/> warning (12\/09\/17) <\/td><td data-cell-id=\"D4\" data-x=\"3\" data-y=\"4\" data-db-index=\"4\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"ICOs are very high-risk speculative investments. Investors should be conscious of the risks involved. Whether an ICO falls within the FCA&#039;s regulatory boundaries or not can only be decided case by case. Businesses involved in an ICO should carefully consider if their activities could mean they are arranging, dealing or advising on regulated financial investments. Each promoter needs to consider whether their activities amount to regulated activities under the relevant law. In addition, digital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorised by the FCA to be able to deliver their services.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings&quot; target=&quot;_blank&quot;&gt;https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings&lt;\/a&gt;\" data-order=\"ICOs are very high-risk speculative investments. Investors should be conscious of the risks involved. Whether an ICO falls within the FCA&#039;s regulatory boundaries or not can only be decided case by case. Businesses involved in an ICO should carefully consider if their activities could mean they are arranging, dealing or advising on regulated financial investments. Each promoter needs to consider whether their activities amount to regulated activities under the relevant law. In addition, digital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorised by the FCA to be able to deliver their services.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings&quot; target=&quot;_blank&quot;&gt;https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings&lt;\/a&gt;\" >ICOs are very high-risk speculative investments. Investors should be conscious of the risks involved. Whether an ICO falls within the FCA's regulatory boundaries or not can only be decided case by case. Businesses involved in an ICO should carefully consider if their activities could mean they are arranging, dealing or advising on regulated financial investments. Each promoter needs to consider whether their activities amount to regulated activities under the relevant law. In addition, digital currency exchanges that facilitate the exchange of certain tokens should consider if they need to be authorised by the FCA to be able to deliver their services.<br \/><a href=\"https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.fca.org.uk\/print\/news\/statements\/initial-coin-offerings<\/a><\/td><\/tr><tr ><td data-cell-id=\"A5\" data-x=\"0\" data-y=\"5\" data-db-index=\"5\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"EU\" data-order=\"EU\" >EU <\/td><td data-cell-id=\"B5\" data-x=\"1\" data-y=\"5\" data-db-index=\"5\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"ESMA\" data-order=\"ESMA\" >ESMA <\/td><td data-cell-id=\"C5\" data-x=\"2\" data-y=\"5\" data-db-index=\"5\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Guidance (13\/11\/17)\" data-order=\"Guidance (13\/11\/17)\" >Guidance (13\/11\/17) <\/td><td data-cell-id=\"D5\" data-x=\"3\" data-y=\"5\" data-db-index=\"5\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"In November 2017, ESMA alerted firms to the need to meet relevant regulatory requirements:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf&lt;\/a&gt;\" data-order=\"In November 2017, ESMA alerted firms to the need to meet relevant regulatory requirements:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf&lt;\/a&gt;\" >In November 2017, ESMA alerted firms to the need to meet relevant regulatory requirements:<br \/><a href=\"https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/esma50-157-828_ico_statement_firms.pdf<\/a><\/td><\/tr><tr ><td data-cell-id=\"A6\" data-x=\"0\" data-y=\"6\" data-db-index=\"6\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"China\" data-order=\"China\" >China <\/td><td data-cell-id=\"B6\" data-x=\"1\" data-y=\"6\" data-db-index=\"6\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"The People&#039;s&lt;br \/&gt; Bank of China\" data-order=\"The People&#039;s&lt;br \/&gt; Bank of China\" >The People's<br \/> Bank of China <\/td><td data-cell-id=\"C6\" data-x=\"2\" data-y=\"6\" data-db-index=\"6\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Ban (04\/09\/17)\" data-order=\"Ban (04\/09\/17)\" >Ban (04\/09\/17) <\/td><td data-cell-id=\"D6\" data-x=\"3\" data-y=\"6\" data-db-index=\"6\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"In essence, ICO is a kind of non-approved illegal open fund raising behaviour, suspected of illegal sale tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. As of the date of this announcement, all types of currency issuance financing activities shall cease immediately.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/&quot; target=&quot;_blank&quot;&gt;https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/&lt;\/a&gt;\" data-order=\"In essence, ICO is a kind of non-approved illegal open fund raising behaviour, suspected of illegal sale tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. As of the date of this announcement, all types of currency issuance financing activities shall cease immediately.&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/&quot; target=&quot;_blank&quot;&gt;https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/&lt;\/a&gt;\" >In essence, ICO is a kind of non-approved illegal open fund raising behaviour, suspected of illegal sale tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. As of the date of this announcement, all types of currency issuance financing activities shall cease immediately.<br \/><a href=\"https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.coindesk.com\/china-outlaws-icos-financial-regulators-order-halt-token-trading\/<\/a><\/td><\/tr><tr ><td data-cell-id=\"A7\" data-x=\"0\" data-y=\"7\" data-db-index=\"7\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Eurasian Economic Union\" data-order=\"Eurasian Economic Union\" >Eurasian Economic Union <\/td><td data-cell-id=\"B7\" data-x=\"1\" data-y=\"7\" data-db-index=\"7\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Eurasian&lt;br \/&gt; Economic Commission\" data-order=\"Eurasian&lt;br \/&gt; Economic Commission\" >Eurasian<br \/> Economic Commission <\/td><td data-cell-id=\"C7\" data-x=\"2\" data-y=\"7\" data-db-index=\"7\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Recommendation&lt;br \/&gt; (Ongoing)\" data-order=\"Recommendation&lt;br \/&gt; (Ongoing)\" >Recommendation<br \/> (Ongoing) <\/td><td data-cell-id=\"D7\" data-x=\"3\" data-y=\"7\" data-db-index=\"7\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Eurasian Economic Commission is in the process of developping a recommendation for member countries (Russia, Kazakhstan, Kyrgyzstan, Belarussia, Armenia) on how cryptoeconomy (cryptocurrency, ICO, cryptoexchange, etc.) should be regulated in member countries. The recommendation will create a regulatory framework and will touch the issues of taxation, AML\/CFT, how cryptocurrency can be used as a means of payment. The purpose of recommendation is to create a harmonized regulation of cryptoeconomy in the region, where a single financial market must be established by 2025.\" data-order=\"Eurasian Economic Commission is in the process of developping a recommendation for member countries (Russia, Kazakhstan, Kyrgyzstan, Belarussia, Armenia) on how cryptoeconomy (cryptocurrency, ICO, cryptoexchange, etc.) should be regulated in member countries. The recommendation will create a regulatory framework and will touch the issues of taxation, AML\/CFT, how cryptocurrency can be used as a means of payment. The purpose of recommendation is to create a harmonized regulation of cryptoeconomy in the region, where a single financial market must be established by 2025.\" >Eurasian Economic Commission is in the process of developping a recommendation for member countries (Russia, Kazakhstan, Kyrgyzstan, Belarussia, Armenia) on how cryptoeconomy (cryptocurrency, ICO, cryptoexchange, etc.) should be regulated in member countries. The recommendation will create a regulatory framework and will touch the issues of taxation, AML\/CFT, how cryptocurrency can be used as a means of payment. The purpose of recommendation is to create a harmonized regulation of cryptoeconomy in the region, where a single financial market must be established by 2025. <\/td><\/tr><tr ><td data-cell-id=\"A8\" data-x=\"0\" data-y=\"8\" data-db-index=\"8\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Japan\" data-order=\"Japan\" >Japan <\/td><td data-cell-id=\"B8\" data-x=\"1\" data-y=\"8\" data-db-index=\"8\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Financial&lt;br \/&gt; Services Agency of Japan (FSA)\" data-order=\"Financial&lt;br \/&gt; Services Agency of Japan (FSA)\" >Financial<br \/> Services Agency of Japan (FSA) <\/td><td data-cell-id=\"C8\" data-x=\"2\" data-y=\"8\" data-db-index=\"8\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Statement on&lt;br \/&gt; ICOs (27\/10\/17)\" data-order=\"Statement on&lt;br \/&gt; ICOs (27\/10\/17)\" >Statement on<br \/> ICOs (27\/10\/17) <\/td><td data-cell-id=\"D8\" data-x=\"3\" data-y=\"8\" data-db-index=\"8\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"ICOs may fall within the scope of the the Payment Services Act and\/or the Financial Instruments and Exchange Act, depending on how they are structured. Businesses delivering such services without registration are subject to criminal penalties. FSA also warns of risks associated with ICOs (price volatility, potential for fraud).&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf&lt;\/a&gt;\" data-order=\"ICOs may fall within the scope of the the Payment Services Act and\/or the Financial Instruments and Exchange Act, depending on how they are structured. Businesses delivering such services without registration are subject to criminal penalties. FSA also warns of risks associated with ICOs (price volatility, potential for fraud).&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf&lt;\/a&gt;\" >ICOs may fall within the scope of the the Payment Services Act and\/or the Financial Instruments and Exchange Act, depending on how they are structured. Businesses delivering such services without registration are subject to criminal penalties. FSA also warns of risks associated with ICOs (price volatility, potential for fraud).<br \/> Source: <a href=\"https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.fsa.go.jp\/policy\/virtual_currency\/07.pdf<\/a><\/td><\/tr><tr ><td data-cell-id=\"A9\" data-x=\"0\" data-y=\"9\" data-db-index=\"9\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Korea\" data-order=\"Korea\" >Korea <\/td><td data-cell-id=\"B9\" data-x=\"1\" data-y=\"9\" data-db-index=\"9\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Financial&lt;br \/&gt; Services Commission (FSC)\" data-order=\"Financial&lt;br \/&gt; Services Commission (FSC)\" >Financial<br \/> Services Commission (FSC) <\/td><td data-cell-id=\"C9\" data-x=\"2\" data-y=\"9\" data-db-index=\"9\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Ban (29\/09\/17)\" data-order=\"Ban (29\/09\/17)\" >Ban (29\/09\/17) <\/td><td data-cell-id=\"D9\" data-x=\"3\" data-y=\"9\" data-db-index=\"9\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"South Korea&#039;s Financial Services Commission took the decision to ban all forms of cryptocurrency-based money raising activity, saying it has &quot;serious concern about the fact that the current market funds are being pushed into a non-productive speculative direction&lt;br \/&gt; &lt;a href=&quot;http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&amp;r=US&amp;IR=T&quot; target=&quot;_blank&quot;&gt;http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&amp;r=US&amp;IR=T&lt;\/a&gt;\" data-order=\"South Korea&#039;s Financial Services Commission took the decision to ban all forms of cryptocurrency-based money raising activity, saying it has &quot;serious concern about the fact that the current market funds are being pushed into a non-productive speculative direction&lt;br \/&gt; &lt;a href=&quot;http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&amp;r=US&amp;IR=T&quot; target=&quot;_blank&quot;&gt;http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&amp;r=US&amp;IR=T&lt;\/a&gt;\" >South Korea's Financial Services Commission took the decision to ban all forms of cryptocurrency-based money raising activity, saying it has \"serious concern about the fact that the current market funds are being pushed into a non-productive speculative direction<br \/><a href=\"http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&amp;r=US&amp;IR=T\" target=\"_blank\" rel=\"nofollow noopener\">http:\/\/www.businessinsider.com\/ico-south-korea-bans-icos-2017-9?international=true&r=US&IR=T<\/a><\/td><\/tr><tr ><td data-cell-id=\"A10\" data-x=\"0\" data-y=\"10\" data-db-index=\"10\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Russia\" data-order=\"Russia\" >Russia <\/td><td data-cell-id=\"B10\" data-x=\"1\" data-y=\"10\" data-db-index=\"10\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Bank of Russia and Ministry of&lt;br \/&gt; Finance\" data-order=\"Bank of Russia and Ministry of&lt;br \/&gt; Finance\" >Bank of Russia and Ministry of<br \/> Finance <\/td><td data-cell-id=\"C10\" data-x=\"2\" data-y=\"10\" data-db-index=\"10\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Draft&lt;br \/&gt; Regulation (25\/01\/18)\" data-order=\"Draft&lt;br \/&gt; Regulation (25\/01\/18)\" >Draft<br \/> Regulation (25\/01\/18) <\/td><td data-cell-id=\"D10\" data-x=\"3\" data-y=\"10\" data-db-index=\"10\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Proposal for regulatory framework for ICOs and cryptocurrency exchanges. The draft law regulates the creation, issuance, storage and circulation of digital financial assets, as well as the exercise of rights and performance of obligations under smart contracts&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&amp;page_id=2104&amp;popup=Y&amp;area_id=4#&quot; target=&quot;_blank&quot;&gt;https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&amp;page_id=2104&amp;popup=Y&amp;area_id=4#&lt;\/a&gt;\" data-order=\"Proposal for regulatory framework for ICOs and cryptocurrency exchanges. The draft law regulates the creation, issuance, storage and circulation of digital financial assets, as well as the exercise of rights and performance of obligations under smart contracts&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&amp;page_id=2104&amp;popup=Y&amp;area_id=4#&quot; target=&quot;_blank&quot;&gt;https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&amp;page_id=2104&amp;popup=Y&amp;area_id=4#&lt;\/a&gt;\" >Proposal for regulatory framework for ICOs and cryptocurrency exchanges. The draft law regulates the creation, issuance, storage and circulation of digital financial assets, as well as the exercise of rights and performance of obligations under smart contracts<br \/> Source: <a href=\"https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&amp;page_id=2104&amp;popup=Y&amp;area_id=4#\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.minfin.ru\/ru\/document\/?id_4=121810&page_id=2104&popup=Y&area_id=4#<\/a><\/td><\/tr><tr ><td data-cell-id=\"A11\" data-x=\"0\" data-y=\"11\" data-db-index=\"11\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"United States\" data-order=\"United States\" >United States <\/td><td data-cell-id=\"B11\" data-x=\"1\" data-y=\"11\" data-db-index=\"11\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Securities and&lt;br \/&gt; Exchange Commission (SEC)\" data-order=\"Securities and&lt;br \/&gt; Exchange Commission (SEC)\" >Securities and<br \/> Exchange Commission (SEC) <\/td><td data-cell-id=\"C11\" data-x=\"2\" data-y=\"11\" data-db-index=\"11\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Investigate&lt;br \/&gt; report + Investor Bulletin (\u201cDAO Report\u201d)&lt;br \/&gt; (25\/07\/17) Investor alert (28\/08\/17) Settled order (\u201cMunchee Order\u201d) (11\/12\/17)\" data-order=\"Investigate&lt;br \/&gt; report + Investor Bulletin (\u201cDAO Report\u201d)&lt;br \/&gt; (25\/07\/17) Investor alert (28\/08\/17) Settled order (\u201cMunchee Order\u201d) (11\/12\/17)\" >Investigate<br \/> report + Investor Bulletin (\u201cDAO Report\u201d)<br \/> (25\/07\/17) Investor alert (28\/08\/17) Settled order (\u201cMunchee Order\u201d) (11\/12\/17) <\/td><td data-cell-id=\"D11\" data-x=\"3\" data-y=\"11\" data-db-index=\"11\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws. New technologies and financial products, such as those associated with ICOs, can be used improperly to entice investors with the promise of high returns in a new investment space. The SEC&#039;s Office of Investor Education and Advocacy is issuing this Investor Bulletin to make investors aware of potential risks of participating in ICOs&lt;br \/&gt; \u2022 Press Release: &lt;a href=&quot;https:\/\/www.sec.gov\/news\/press-release\/2017-131&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/press-release\/2017-131&lt;\/a&gt;&lt;br \/&gt; \u2022 Investigation Report:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf&lt;\/a&gt;&lt;br \/&gt; \u2022 Investor Alert:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings&quot; target=&quot;_blank&quot;&gt;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; The SEC issued a warning against potential ICO scams and &quot;pump and dump&quot; schemes by public companies. The warning follows recent trading suspensions&lt;br \/&gt; &lt;br \/&gt; &lt;a href=&quot;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related&quot; target=&quot;_blank&quot;&gt;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; The SEC issued a settled order against an issuer named Munchee, Inc., making clear that a token may be a security even if it has some purported utility&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf&lt;\/a&gt;&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418&lt;\/a&gt;\" data-order=\"Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws. New technologies and financial products, such as those associated with ICOs, can be used improperly to entice investors with the promise of high returns in a new investment space. The SEC&#039;s Office of Investor Education and Advocacy is issuing this Investor Bulletin to make investors aware of potential risks of participating in ICOs&lt;br \/&gt; \u2022 Press Release: &lt;a href=&quot;https:\/\/www.sec.gov\/news\/press-release\/2017-131&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/press-release\/2017-131&lt;\/a&gt;&lt;br \/&gt; \u2022 Investigation Report:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf&lt;\/a&gt;&lt;br \/&gt; \u2022 Investor Alert:&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings&quot; target=&quot;_blank&quot;&gt;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; The SEC issued a warning against potential ICO scams and &quot;pump and dump&quot; schemes by public companies. The warning follows recent trading suspensions&lt;br \/&gt; &lt;br \/&gt; &lt;a href=&quot;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related&quot; target=&quot;_blank&quot;&gt;https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related&lt;\/a&gt;&lt;br \/&gt; &lt;br \/&gt; The SEC issued a settled order against an issuer named Munchee, Inc., making clear that a token may be a security even if it has some purported utility&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf&lt;\/a&gt;&lt;br \/&gt; &lt;a href=&quot;https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418&lt;\/a&gt;\" >Depending on the facts and circumstances of each individual ICO, the virtual coins or tokens that are offered or sold may be securities. If they are securities, the offer and sale of these virtual coins or tokens in an ICO are subject to the federal securities laws. New technologies and financial products, such as those associated with ICOs, can be used improperly to entice investors with the promise of high returns in a new investment space. The SEC's Office of Investor Education and Advocacy is issuing this Investor Bulletin to make investors aware of potential risks of participating in ICOs<br \/> \u2022 Press Release: <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2017-131\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sec.gov\/news\/press-release\/2017-131<\/a><br \/> \u2022 Investigation Report:<br \/><a href=\"https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sec.gov\/litigation\/investreport\/34-81207.pdf<\/a><br \/> \u2022 Investor Alert:<br \/><a href=\"https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-bulletin-initial-coin-offerings<\/a><br \/><br \/> The SEC issued a warning against potential ICO scams and \"pump and dump\" schemes by public companies. The warning follows recent trading suspensions<br \/><br \/><a href=\"https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related\" target=\"_blank\" rel=\"nofollow noopener\">https:\/\/www.investor.gov\/additional-resources\/news-alerts\/alerts-bulletins\/investor-alert-public-companies-making-ico-related<\/a><br \/><br \/> The SEC issued a settled order against an issuer named Munchee, Inc., making clear that a token may be a security even if it has some purported utility<br \/><a href=\"https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sec.gov\/litigation\/admin\/2017\/33-10445.pdf<\/a><br \/><a href=\"https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418<\/a><\/td><\/tr><tr ><td data-cell-id=\"A12\" data-x=\"0\" data-y=\"12\" data-db-index=\"12\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"United States (cont&#039;d)\" data-order=\"United States (cont&#039;d)\" >United States (cont'd) <\/td><td data-cell-id=\"B12\" data-x=\"1\" data-y=\"12\" data-db-index=\"12\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"\" data-order=\"\" ><\/td><td data-cell-id=\"C12\" data-x=\"2\" data-y=\"12\" data-db-index=\"12\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"Statement on&lt;br \/&gt; Digital Asset Securities Issuance and Trading (16\/11\/18)\" data-order=\"Statement on&lt;br \/&gt; Digital Asset Securities Issuance and Trading (16\/11\/18)\" >Statement on<br \/> Digital Asset Securities Issuance and Trading (16\/11\/18) <\/td><td data-cell-id=\"D12\" data-x=\"3\" data-y=\"12\" data-db-index=\"12\" class=\"htLeft htTop fsize-11\" data-cell-type=\"text\" data-original-value=\"The SEC highlights recent enforcement actions involving the intersection of long-standing applications of federal securities laws and new technologies, falling into three categories: (1) initial offers and sales of digital asset securities (including those issued in ICOs; (2) investment vehicles investing in digital asset securities and those who advise others about investing in these securities; and (3) secondary market trading of digital asset securities. Market participants must still adhere to the well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain. There is a path to compliance with the federal securities laws going forward, even where issuers have conducted an illegal unregistered offering of digital asset securities.&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading&lt;\/a&gt;\" data-order=\"The SEC highlights recent enforcement actions involving the intersection of long-standing applications of federal securities laws and new technologies, falling into three categories: (1) initial offers and sales of digital asset securities (including those issued in ICOs; (2) investment vehicles investing in digital asset securities and those who advise others about investing in these securities; and (3) secondary market trading of digital asset securities. Market participants must still adhere to the well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain. There is a path to compliance with the federal securities laws going forward, even where issuers have conducted an illegal unregistered offering of digital asset securities.&lt;br \/&gt; Source: &lt;a href=&quot;https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading&quot; target=&quot;_blank&quot;&gt;https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading&lt;\/a&gt;\" >The SEC highlights recent enforcement actions involving the intersection of long-standing applications of federal securities laws and new technologies, falling into three categories: (1) initial offers and sales of digital asset securities (including those issued in ICOs; (2) investment vehicles investing in digital asset securities and those who advise others about investing in these securities; and (3) secondary market trading of digital asset securities. Market participants must still adhere to the well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain. There is a path to compliance with the federal securities laws going forward, even where issuers have conducted an illegal unregistered offering of digital asset securities.<br \/> Source: <a href=\"https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading<\/a><\/td><\/tr><\/tbody><\/table><!-- \/#supsystic-table-10.supsystic-table --><div class=\"table-signature\">(Source: <a href=\"https:\/\/www.oecd.org\/finance\/ICOs-for-SME-Financing.pdf\" target=\"_blank\" rel=\"nofollow noopener\">ODEC<\/a>)<\/div><\/div><!-- \/.supsystic-tables-wrap --><!-- Tables Generator by Supsystic --><!-- Version:1.10.14 --><!-- http:\/\/supsystic.com\/ -->\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Examples of\ncompanies creating their tokens like Telegram show that it can be beneficial\nfor both developers and investors. More than 1.5 billion USD was invested in\nthe development of a scalable Blockchain network with a throughput of several\nmillion transactions per second. Encryption algorithms complement all this.<\/p>\n\n\n\n<p>The gradual\nformation of stricter rules for ICOs makes them safer for investors. However,\nbefore participating in any transaction, it is necessary to study the documents\nand information about the company carefully.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article is a complete guide and answer to the question of what is an initial coin offering. If you are interested in digital investment, welcome to our review. ICO Initial Coin Offering is a digital-analog of the issue of shares of ordinary companies in the digital asset market. The development company launches the project &#8230; <a title=\"What Is An ICO &#8211; Initial Coin Offering Meaning &#8211; The Best Full 2021 Guide\" class=\"read-more\" href=\"https:\/\/coindataflow.com\/clue\/what-is-an-ico\">Read more<span class=\"screen-reader-text\">What Is An ICO &#8211; Initial Coin Offering Meaning &#8211; The Best Full 2021 Guide<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[5],"tags":[],"modified_by":"Alex","_links":{"self":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1370"}],"collection":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/comments?post=1370"}],"version-history":[{"count":28,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1370\/revisions"}],"predecessor-version":[{"id":2554,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/1370\/revisions\/2554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media\/1485"}],"wp:attachment":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media?parent=1370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/categories?post=1370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/tags?post=1370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}