Why not the US?
We are often asked about the reason why our tokens cannot be purchased by US residents and why ICOs are restricted in that country. Let’s find out together. The United States of America are, perhaps, one of the most coveted countries to conduct cryptocurrency business and ICO in particular.
However, even the projects and companies that have branched out into the US to conduct their ICOs and issue tokens usually make a separate company to do all the same in other jurisdictions where such activity is openly welcomed, or where the industry is not yet regulated at the time of the potential token sale. Same goes for US citizens and residents taking part in token sales — their participation is restricted. This has to do with legislation concerning the stock market and securities.
For a lot of projects conquering this market is a dream, but why were ICOs banned in that country? They are not, in fact, banned, just regulated.
In July 2017 the SEC announced that some tokens can be deemed securities if they meet certain conditions (e.g. voting privileges, share in the company, promise of profit etc.). To determine if the token is, in fact, a security, Howey Test, Family Resemblance Test and Capital Risk Test are used along with a few additional ones. The SEC has also issued a number of documents warning future investors about the potential risks involved with participating in ICOs.
This is exactly why currently, as we have mentioned, US-based companies choose other jurisdictions to conduct token offering and make it easier for both potential investors and themselves.
All these restrictions affect other ICO projects anywhere in the world. Many projects ban US residents from participating in their coin offerings.
The development of ICOs in that country, at least for now, is pretty hazy. What most likely is going to happen, however, is that the US will remain popular as a location for company headquarters, and tokens for the ICO will be issued in a different, more accommodating jurisdiction.
