While other regulators are still in “wait and see” mode the Swiss Financial Market Supervisory Authority has published guidelines on ICOs.
Initial Coin Offerings are now mushrooming in Germany as well and the regulator published a guidance note explaining the circumstances under which tokens are “financial instruments”.
There’s increasing demand for best practices, codes of conduct and self-regulatory frameworks to be developed. And there are signs that the sector is responding.
Reported valuations of cryptocurrencies and digital assets are on the rise. With cryptocurrency investors entering into unsecured and/or secured financing, the risks attached to this trend are noteworthy.
According to estimates, approximately 80% of all ICOs are fraudulent offerings and most of the remaining ICOs are difficult to evaluate.
While each regulator chooses its own way, most believe the best approach is to look past the technology and focus on how products behave. But this could change as digital currencies proliferate.