In the last post on ICOs, we reviewed definitions and impact of its growing popularity with investors on international markets. Today, we breakdown the response of different regulators around the globe.
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The Australian Securities and Investments Commission (ASIC) has set no clear regulations for ICOs. Instead, depending on the nature of the ICO, they fall into different regulatory categories. For example, if the tokens share the characteristics of the ASIC's definition of a share or derivative, then the ICO will fall under Australia's financial regulations. You can read the ASIC's full release here (source).
ICOs remain unregulated in Brazil. The Brazilian Federal Reserve Bank issued a statement last November alerting citizens to the risks associated with ICOs, but they have yet to consider the regulation of ICOs or cryptocurrencies.
The Canadian Securities Administration (CSA) associates ICOs as securities, and regulations are carried out on a case by case basis. They have also developed a regulatory sandbox so that smaller fintech companies who wish to issue an ICO can remain compliant. (source).
China, South Korea and India
China, South Korea and India have all taken the drastic action of banning ICO activity outright. Further to this, reports suggest that China wishes to ban all crypto related trading in its entirety.
The EU has yet to take a formal stance and dedicate specific regulations to ICOs. Currently ICOs are allowed provided they adhere to anti money laundering and know your customer policies. However their has been recent calls for fresh regulation, so this stance is likely to change in the near future. (source).
Hong Kong's Securities and Futures Commission (SFC) released an alert in February of this year warning investors of the potential risks associated with ICOs. (source).
The Financial Markets Authority (FMA) take each ICO on a case by case basis. An ICO is regulated just like any other financial product. There are four types of financial products and ICO can fall under; debt securities, equity securities, managed investment products and derivatives. Any ICO which doesnt fall into one of these categories will be subject to general consumer protection laws. (source).
Russia adopted a stringent regulatory response to ICOs. Reports suggest that new regulations are currently being prepared for ICOs. It is believed that ICOs will need to register with the Russian Federation and that all issuance of digital tokens must be carried out in rubles and through Russian bank accounts. (source).
Singapore are currently trail blazers in the fight to regulate cryptocurrencies and ICOs. The Monetary Authority of Singapore (MAS) released a set of clear guidelines for the registering and regulation of ICOs last year, as a result Singapore has become a jurisdiction of choice for ICOs. (source).
The Swiss Financial Market Supervisory Authority (FINMA) have yet to create any ICO specific regulations. For now ICOs fall under the banking act, and must adhere to AML and security laws. (source).
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