If you want to build credibility for your ICO, there are some things you need to consider from a legal and regulatory perspective.
Your business model or technology
Structuring your ICO
Legal and regulatory issues
The first thing to consider is whether your ICO or token is characterized as a security or some other scheme which will require regulatory approvals.
In the following sections, I will talk about legal and regulatory issues in Singapore, the US, and China:
Singapore: The Monetary Authority of Singapore (MAS) issued a press release stating, “The offer or issue of digital tokens in Singapore will be regulated by MAS if the digital tokens constitute products regulated under the Securities and Futures Act (SFA).”
United States: The US SEC issued a report stating that an ICO by a decentralised autonomous organization or corporation (DAO/DAC) would be subject to federal securities laws and that the tokens sold during these ICOs would be considered securities.
China: In September 2017, China’s central bank issued a statement banning ICOs and digital token trading, forcing all cryptocurrency exchanges to close.
You’ll need to navigate some legal and regulatory minefields, structure your ICO/digital token sale in a way that is credible, present a compelling case for your team and your business, and market it well.
This is an excerpt of the article published on Tech in Asia. You can read the full article here.