Create a framework for ICOs
Youve done your homework and read our guide: Should You Launch An ICO? But chances are you still cant discern if an ICO is legitimate or not. If youve even taken one look at a whitepaper, chances are youve 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 wont 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 its managed. But although an ICO can make sense, it wont if theres no product and the team behind it isnt even real.
A clear set of rules on what is and isnt 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