Create a framework for ICOs
You’ve done your homework and read our guide: “Should You Launch An ICO?” But chances are you still can’t discern if an ICO is legitimate or not. If you’ve even taken one look at a whitepaper, chances are you’ve given up on the first paragraph.

People are investing in ICOs just because of the hype and have no idea where their money is going – this won’t end well.

ICOs have their place in the decentralised universe. Imagine a new, less awful, Twitter was created and funded by pre-selling usernames – thanks to the blockchain, users would be able to vote on how it’s managed. But although an ICO can make sense, it won’t if there’s no product and the team behind it isn’t even real.

A clear set of rules on what is and isn’t acceptable should be set out. In September 2017, the FCA said “an ICO could be considered as deposit-taking, e-money issuance, contract for difference, derivative or a collective investment scheme”. Er, okay. Also, who is responsible for the funds raised? What is the refund mechanism if they fail to deliver? What action can be taken in the event of governance issues?

Challenger Banks have to go through endless hoops to prove they can hold large stakes of customers' money – how are new blockchains any different?

But it would be very hard for the government to regulate every ICO out there. So…