Topic: Will ICO's come to a grinding Halt? (Read 115 times)
Hopefully ICO is not prohibited but will be more tightened regulations such as making KYC first sebelum sell or buy token derived ....
I don't want to ICO will be banned, but the ICO will face tougher regulation, now all countries in the plan to take strict measures to regulate the ICO market, or the current fraud ICO project is really too much.
Is this going to have a negative effect on all of the ICO platforms, like ETH, NEO, EOS etc?
Below is part of an article that outline how exchanges and developers will possibly be classified as money transmitters and be subject to laws involving AML & KYC. I am concerned that this is just the begining.
The Financial Crimes Enforcement Network (FinCEN) published a letter Tuesday that indicates the U.S. agency will apply its regulations to those who conduct initial coin offerings (ICOs).
In the letter, which was sent to U.S. Senator Ron Wyden last month, FinCEN's assistant secretary for legislative affairs, Drew Maloney, explained that both developers and exchanges involved in the sale of an ICO-derived token would be liable to register as a money transmitter and comply with the relevant statutes around anti-money laundering and know-your-customer (KYC) rules.
The letter reads:
"...a developer that sells convertible virtual currency, including in the form of ICO coins or tokens, in exchange for another type of value that substitutes for currency is a money transmitter and must comply with AML/CFT requirements that apply to this type of [money services business]. An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that subsitutes for currency, would typically also be a money transmitter."
Full Article https://www.coindesk.com/fincen-money-transmitter-rules-apply-ico-developers-exchanges/
Below is part of an article that outline how exchanges and developers will possibly be classified as money transmitters and be subject to laws involving AML & KYC. I am concerned that this is just the begining.
The Financial Crimes Enforcement Network (FinCEN) published a letter Tuesday that indicates the U.S. agency will apply its regulations to those who conduct initial coin offerings (ICOs).
In the letter, which was sent to U.S. Senator Ron Wyden last month, FinCEN's assistant secretary for legislative affairs, Drew Maloney, explained that both developers and exchanges involved in the sale of an ICO-derived token would be liable to register as a money transmitter and comply with the relevant statutes around anti-money laundering and know-your-customer (KYC) rules.
The letter reads:
"...a developer that sells convertible virtual currency, including in the form of ICO coins or tokens, in exchange for another type of value that substitutes for currency is a money transmitter and must comply with AML/CFT requirements that apply to this type of [money services business]. An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that subsitutes for currency, would typically also be a money transmitter."
Full Article https://www.coindesk.com/fincen-money-transmitter-rules-apply-ico-developers-exchanges/
Jump to: