EDIT: see my
latest post on this.
Right now we're in the Wild West Capitalism ICO phase. I expect the market to get somewhat regulated over time as gov regulation catches up. However, the cat is out of the bad and there is no turning back anymore.
I presume you voted No in the poll and are justifying your No vote with the bolded (my emphasis added) assertion.
You do not seem to understand the point that the authorities do indeed have the power to compel investors to not trade illegal ICO issued securities, because investors have to report their itemized capital gains on tax reporting.
I guess we will find out how significant tax avoiding cash markets are if authorities delist and make illegal the trading of unregistered securities (i.e. ICO issued tokens that were not registered).
Personally I am not against the rise of decentralization. I am just trying to be pragmatic and understand implications and how to best position for the outcome.
As my prior posts in this thread explained in great detail, the future of ICOs are registered securities, but these will only trade on registered exchanges, but each nation has a different registration policy for both securities and the exchanges of securities. This will be a huge non-fungible mess (analogous to how stock trading is not international). And if the issuer does not maintain compliance and reporting, the registration can be revoked and then it is illegal to trade the token to other investors (unless the token had been held for 3 years by everyone). That is an unworkable mess. Nothing like the global ICO trading we have now.
@CoinHoarders summary and I agree that just like in the Dot.Com bubble burst, most of the ICOs will end up worthless and useless.
Note
Australia has just pointed out that my blog is correct and that most ICOs are securities per the pooled funds and common enterprise test. Every nation is preparing to crackdown on unregistered ICOs.
Disclaimer: IANAL. This isnt legal advice.
Re: ICO's killing crypto[
]
Not that extreme. Theyre just going to use the ICO regulation to increase the digital tracking of everything we do:
In December meanwhile,
more stringent identification of virtual currency holders who convert funds to fiat will come into being, with the onus on businesses to ensure they can identify customers behind the conversions.
Banks will also monitor unusual cashflow events.
We will start the transaction by confirming the identity of the bank and monitoring the flow of funds, the official continued.
It will facilitate tracking of funds
and provide a basis for preventing money laundering such as suspicious transaction reports."
Japan on it's move to regulate cryptocoins, has started licensing exchanges operating inside it's jurisdiction.
https://www.bitsonline.com/japanese-exchanges-licenses/Quoinex becomes the first to get such license followed by bitflyer.
So, are we going towards more kyc, identity verification, source of income, income tax, profit tax, remittance tax?