How to regulate ICOs?

Author: | Published: 30 Oct 2017

Initial coin offerings are giving regulators a headache because they don’t play by traditional rules. How should they be approached?

How should initial coin offerings be dealt with?

Cryptocurrencies have had a bumpy ride, ever since the first bitcoins were issued nearly 10 years ago. But while the digital money market is persistently on the receiving end of criticism as to its lack of transparency and regulation, and potential for misuse, it is in the process of stabilising, with a market capitalisation currently standing around $50 billion.

Enter initial coin offerings (ICOs), the latest innovation in the virtual money space. These allow companies to crowdfund by selling tokens or coins in exchange for cash to support the launch of a project or a new virtual currency they are involved in. These sales, which are often compared to initial public offerings – with the important difference that they are currently...