If they're unregulated, then they have no legal obligations. The law can't ask anything of something that doesn't exist in its terms. I can't really comment on their legitimacy, because you have to view each individual case separately, but they've definitely been used, and are still being used to orchestrate scams and pump and dump schemes.
Countries have already started to crack down on the practice, with the United States indicating it can apply federal security laws to ICOs on a case-to-case basis, as indicated here:
https://www.coindesk.com/securities-exchange-commission-us-securities-laws-may-apply-token-sales/
Countries have already started to crack down on the practice, with the United States indicating it can apply federal security laws to ICOs on a case-to-case basis, as indicated here:
https://www.coindesk.com/securities-exchange-commission-us-securities-laws-may-apply-token-sales/
All system especially those who are new have been used by scammers many times to lure people and their money into their arms. ICOs are not exemption to the rule and it is even more attractive and this can be the main reason why scam artists are not having a field day introducing their own ICOs anywhere. Because of the immense interest by many people (well, including me as I am also an ICO buyer from time to time) the market is now being used at the same time by unscrupulous people whose main intention is to grab money from unsuspecting public.
However, rather than banning the whole thing there should be regulatory framework that must be established aiming to protect ICO participants. Countries that are banning outright are countries that are so LAZY to do their regulatory job and they just choose to dismiss the whole thing. ICO is nothing more than the crowdfunding which have been with us for years.
I would agree under normal circumstances. ICOs aren't inherently bad and could even evolve into something greater if allowed to grow. That's not always the case though.
China's ban for example, is said to be temporary as they craft sufficient regulations. This way, no one else gets scammed until the government is actually able to make sure ICOs are safe for its citizens. I'm sure there are other, better ways of going about it, but China isn't known for its progressive stances, so I'll take that over a complete ban. I don't know the situation in other countries, but I do hope ICOs get legitimized in the future.
