The UK authorities are considering the regulation of ICO
The UK Financial Regulatory Authority is studying a new method of attracting funding and notes that many projects are covered by the UK regulatory framework.
The April newsletter of FCA noted that Initial Coin Offering has much in common with such methods of raising capital as Initial Public Offering, private placement of securities or crowdfunding. Depending on how ICO is structured, projects can fall into the regulatory perimeter of management, the document said.
The April FCA newsletter noted that the Initial Coin Offering has much in common with methods of raising capital such as the Initial Public Offer, private placement of securities or crowdfunding. Depending on the structure of the ICO, projects may fall within the regulatory scope of management, said the document.
Therefore, FCA recognized that rules protecting investors and providing disclosure obligations for an issuing company may be applied to ICOs depending on their structure.
Previously, the ICO had been banned in China, where this method of raising funds had been declared illegal. Financial regulators in the United States, Singapore, Canada, Singapore and Hong Kong have announced that the primary position of the tokens shares similarities with the sale of securities, and must therefore be conducted in accordance with the applicable securities laws.