Cryptocurrencies pose regulation dilemma

Author: | Published: 27 Apr 2018

The regulation of virtual currencies poses a number of practical questions

Initial coin offerings (ICOs) have revolutionised the way that certain companies are able to secure funding. Blockchain based projects raised over $3 billion in 2017 using this alternative crowdfunding method, a record number that will be decisively broken in 2018. The Telegram ICO alone raised $1.7 billion in March 2018. The frenzy is driven primarily due to the lack of available alternative funding options for startups seeking to build their projects and the attractiveness of being able to raise money without needing to give up control. There is in addition a perception that issuing tokens enables the issuer to avoid the constraints of regulation in a way that would not be possible if traditional securities were to be issued....