The latest review on ICOs shows that they have emerged as a revolutionary tool pertaining to capital formation. On the flip side, they have also managed to draw an unwanted attention due to their lack of regulation from some quarters.
Today, government regulators are scrutinizing the ICOs more deeply than ever before. While there is no doubt that the ICOs are a powerful tool to raise capital, at the same time there are changes that have to be made so that they can realize their full potential.
Thanks for its highly innovative approach, ICOs can help even the tiniest startup businesses to raise the necessary capital required for their businesses. ICOs offer numerous benefits while representing a better choice to raise funds while compared to traditional tools and strategies for capital formation.
In case a decision has been taken by the SEC that all ICOs are securities, and then it becomes imperative that such offerings should comply with the prevailing securities regulations and laws. It also signifies registering them in a proper manner with the SEC. Alternatively, procuring an exception is necessary, if they want to do away with the registration. So, either the industry will adhere to or the government will have to ensure that the regulations have complied, Irish Tech News reported.
ICO Review: France Introduces Regulations For Its Initial Coin Offerings
Although the European Union has called for a unifying stand on Blockchain and cryptocurrencies, France has taken the plunge and has come up with its own set of regulations for ICOs. Bruno Le Maire, the country’s Minister of Economy and Finance tweeted that a legislative framework has been approved that would need the France-based ICOs to offer guarantees to the investors.
According to the latest review of ICO regulations in France, it seems that the recent legislation would enable the AMF (Authorité des Marchés Financiers) and French financial authorities to send approvals as well as issue permits to businesses that desire to use such ICOs as a capital raising technique. The legislation would also enable potential investors to be fully diligent prior to investing, TNW wrote.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]