How are different countries tackling ICOs? The number of ICOs which are being launched these days are plenty. All over the world, governments and authorities are trying to tackle with ICOs. Even though ICOs are similar to IPOs but there is no proper regulation for the ICOs.
Different rules and regulations:
ICO is a method by the help of which the blockchain-based companies are raising funds. Launch of ICOs is consistently increasing, and millions of dollars are being raised by companies, more and more regulators are actually focusing on ICOs in order to regulate them. This is also done to protect the investors against fraud ICOs.
KYC is one of the best ways in which the regulators are trying to protect the investors when it comes to investing in ICOs. With the help of these norms, the identity of the investors is disclosed. When the identities of the investors are disclosed, there will be no money laundering through ICOs.
Moreover, strict rules and regulations need to be incorporated in order to verify the identities of the company who is launching the ICO. When that is the case, it will become easier for the investors to know which company is legit and which is not.
China ICO Regulations:
China has already issued a blanket ban on ICOs. This is causing the price of cryptocurrencies to fall consistently.
South Korea ICO Regulations:
South Korea has also officially banned ICOs. This is the reason why the citizens of the country cannot participate in any ICO even internationally.
Russia ICO Regulations:
Even though Russia has not outrightly banned ICOs as well as cryptocurrencies but in the coming few months, it is slated to take a hard approach towards the same.
Australia is one of the 1st nations which are trying to come out with ICO regulations in order to protect the investors. Australia is trying to create guidelines which are within the regulatory framework of the country. It is a positive approach towards regulating ICOs.
US ICO Regulations:
The rules and regulations in the United States pertaining to ICO are not very clear. In each and every state, the rules and regulations are different. SEC which is the centralized agency overseeing equities has stated that ICOs can be considered as same as equities. This is the reason why it is trying to enforce the rules and regulations pertaining to equities even to ICOs.
As you can see, the countries all over the world are trying different approaches when it comes to regulating ICOs. Till now, the centralized framework is not possible. Many times, investors are not able to invest in the ICOs due to the absence of ICO rules and regulations.