The problem is that the ICOs are always modelled such that the investment is actually a donation and that makes it harder for the government to intervene even if they wanted to. Case in point you can find plenty of scams on kickstarter or gofundme as well but these sites are still operating and directly in fiat.
I don't think the government will involve itself unless there is a clear cut case of a known person intentionally misleading people and running off.
Topic: Are scam ICOs going to draw the attention of governments? - page 2. (Read 1982 times)
I wonder how exactly the state will hold accountable the people behind the scam scheme - personally or in the name of the legal entity and whether reimbursement could be legally imposed before the asset dilutes. Otherwise what's the sense of even initiating such talks on a state level?...
I am sure that the government will take some measures to counter these activities because of the amount of money they are able to raise within a short period of time and the loss people are encountering if it is a scam,is it possible for them to counter it,i am not sure about that.
as a follow up, another news piece worth paying attention to:
http://www.iflr.com/Article/3721543/Asian-regulators-differ-on-framework-for-bitcoin-operators.html So, Japan is already creating regulatory hurdles for digital asset traders
http://www.iflr.com/Article/3721543/Asian-regulators-differ-on-framework-for-bitcoin-operators.html So, Japan is already creating regulatory hurdles for digital asset traders
https://news.bitcoin.com/russian-bankers-push-to-legalize-cryptocurrency/ something is as well stirring up in Russia though I doubt that "legalize" will mitigate the risk rather than multiply it
I agree with the previous posts about governments not being able to stop cryptocurrencies, but they can definitely make them harder to use in certain countries.
In the US, the SEC is making noise about regulating ICO's at some point: https://news.bitcoin.com/sec-eyes-initial-coin-offerings-for-regulatory-oversight/
Already more than one Altcoin company has said they won't offer coins to US citizens during the initial sale, because the legal implications aren't clear. For example: https://www.bitquence.com/global-remittance-and-transactions/bitquence-token-sale-not-available-in-the-u-s/
It will just take one really high-profile ICO scam to get the US regulatory authorities to act more strongly.
In the US, the SEC is making noise about regulating ICO's at some point: https://news.bitcoin.com/sec-eyes-initial-coin-offerings-for-regulatory-oversight/
Already more than one Altcoin company has said they won't offer coins to US citizens during the initial sale, because the legal implications aren't clear. For example: https://www.bitquence.com/global-remittance-and-transactions/bitquence-token-sale-not-available-in-the-u-s/
It will just take one really high-profile ICO scam to get the US regulatory authorities to act more strongly.
I think it was the SEC that came out and said that we need to be self-regulating; the best way to do that and grow the entire ecosystem is for sale participants to be choosy with their funding to projects with real potential from accountable individuals.
I've seen a lot of ICOs where the team members are based abroad and details are very difficult to verify -- and then inevitably vanish after the ICO completes. That these continue to get funded is, I feel, an injustice to later legitimate projects. I spend at least an hour doing research before taking part in any token sale, several hours on some, and in legitimate project there's always plenty to read and learn.
My opinion is that the primary way of validation should be similar to how VCs operate: the quality of the team behind the project, and how their background pertains to the kind of project they want to do. Prior work experience, contacts in the industry, etc., are all important. Amibitious projects, in my mind, are not something we should shy away from, as the next big thing can often be easily doubted at the beginning, and even the most successful businesses morph and change from humble beginnings.
I've seen a lot of ICOs where the team members are based abroad and details are very difficult to verify -- and then inevitably vanish after the ICO completes. That these continue to get funded is, I feel, an injustice to later legitimate projects. I spend at least an hour doing research before taking part in any token sale, several hours on some, and in legitimate project there's always plenty to read and learn.
My opinion is that the primary way of validation should be similar to how VCs operate: the quality of the team behind the project, and how their background pertains to the kind of project they want to do. Prior work experience, contacts in the industry, etc., are all important. Amibitious projects, in my mind, are not something we should shy away from, as the next big thing can often be easily doubted at the beginning, and even the most successful businesses morph and change from humble beginnings.
I agree with the previous posts about governments not being able to stop cryptocurrencies, but they can definitely make them harder to use in certain countries.
In the US, the SEC is making noise about regulating ICO's at some point: https://news.bitcoin.com/sec-eyes-initial-coin-offerings-for-regulatory-oversight/
Already more than one Altcoin company has said they won't offer coins to US citizens during the initial sale, because the legal implications aren't clear. For example: https://www.bitquence.com/global-remittance-and-transactions/bitquence-token-sale-not-available-in-the-u-s/
It will just take one really high-profile ICO scam to get the US regulatory authorities to act more strongly.
In the US, the SEC is making noise about regulating ICO's at some point: https://news.bitcoin.com/sec-eyes-initial-coin-offerings-for-regulatory-oversight/
Already more than one Altcoin company has said they won't offer coins to US citizens during the initial sale, because the legal implications aren't clear. For example: https://www.bitquence.com/global-remittance-and-transactions/bitquence-token-sale-not-available-in-the-u-s/
It will just take one really high-profile ICO scam to get the US regulatory authorities to act more strongly.
Government must not do everything for us, are we children? We need less government in our lives. The purpose of government have been abused by crooks. This forum is not supervised nor run by government yet it's functioning very well. I'd rather have software and robots run things than so called government.
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
you may feel that way.
they don't. they're here to justify their salaries and protect their position. they'll destroy anyone and anything who gets in the way of that. with that reasoning it's inevitable that they're gonna come down heavy soon.
it's not the matter whether the Government should be at the driver's seat but rather how far the long arm of law could reach as regards misuse of cryptocurrencies
and enforcement of ICO-related obligations.
and enforcement of ICO-related obligations.
Government must not do everything for us, are we children? We need less government in our lives. The purpose of government have been abused by crooks. This forum is not supervised nor run by government yet it's functioning very well. I'd rather have software and robots run things than so called government.
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
Government must not do everything for us, are we children? We need less government in our lives. The purpose of government have been abused by crooks. This forum is not supervised nor run by government yet it's functioning very well. I'd rather have software and robots run things than so called government.
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
Crypto is about to take over the World yet it's is not regulated by government but by softwares and smart stakeholders
Dont you guys think that introduction of specific regulations in the altcoin domain can become quite a reality for countries with generally authoritarian stance - Russia, China, some Latam states maybe?
i think not, even bitcoin can't draw the attention of government because bitcoin is not regulated yet and that is same with altcoin. so for ICO we must know the risk and take the decision. it will be different from Ponzi because that kind investment only steal our money and not give profit. so just avoid it
The government won't got involved until they figure out how to get the money for themselves. Until then, people will have to be more careful, too many scammers.
No, they will not act in any way, it would be way too hard. Even in proven scams using credit cards, reversable, trackable, they do nothing, and when they do, they take that much time that even a legless guy would have the time to world turn at feet.
The United States Government fired a shot across the bow well over four years ago over this. https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf How many ICOs, scam or not, meet the definition of de-centralized virtual currency? Zero. One needs an "Administrator" and "centralized depository" in order deal with the proceeds from the ICO. How many have registered with FinCEN as MSBs? To my knowledge one, Ripple. This was part of the settlement with FinCEN. https://www.fincen.gov/news/news-releases/fincen-fines-ripple-labs-inc-first-civil-enforcement-action-against-virtual
There is no need for the US Congress to act here. The United States Government can use existing law and has a four year old guidance, and a civil enforcement action in place already.
There is no need for the US Congress to act here. The United States Government can use existing law and has a four year old guidance, and a civil enforcement action in place already.
It'll definitely happen. Sooner than later is my guess, about the time some US Congress person's kid gets taken for a lot of money from an ICO. Then we'll get 24/7 news blasted about how dangerous the crypto space is and they'll be a couple Congressional committees to study the issue with the foregone conclusion that gov't needs to insert themselves somehow as the middleman. Those middle men will be the usual suspects from big banks and hedge funds who while supposedly performing oversight will figure out a way to enrich themselves. They will tithe the proper amounts to their favorite politicians so they themselves never have to suffer "oversight". Or it could all be candy corn and rainbows and there are no lessons to learn from history because "cryptos are so like revolutionary man", lol.
Dont think anyone can ever stop it
As mentioned, the main reason why crypto exist - decentralised
Which means no one can ever control, made decision, or change something without the majority agree
Govern will never ever get to shut down cryptos, even if they banned, how can they prevent these?
Blocking Major IP from accessing cryptos wallet/site?
Tor/ Vpn is the key
most of these people are identifiable so they can stop them. they don't even need to pass or enforce any laws, just remind them who's boss and they shut themselves down.
the bucks are too big and too reckless to go unnoticed. it's coming.
With the massive rise of ICOs over the last few months, some of which have been straight up scams and ponzi schemes, will this expedite the entrance of governments into the world of crypto in the name of consumer protection?
Dont think anyone can ever stop it
As mentioned, the main reason why crypto exist - decentralised
Which means no one can ever control, made decision, or change something without the majority agree
Govern will never ever get to shut down cryptos, even if they banned, how can they prevent these?
Blocking Major IP from accessing cryptos wallet/site?
Tor/ Vpn is the key
It may take lots of time because government still evaluating cryptocurrency highly recommended bitcoin also under investigation for legalisation then next will be altcoins and it will take years to evaluate ICO like crypto assets.
I think it really depends how big the ICOs are. Coins like Leocoin which scammed lots of people were investigated and arrests are made. But, for now looks like there are too many to regulate.
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