How is ICO regulated in the US and Canada?
We promised to tell you about the laws regulating ICO, for example, here we wrote about Russia. Today we will talk about the USA and Canada. In these countries government has a similar policy on the crypto-currency and ICO.
From July 1 2018 ICO in the US from the according to the law is equated to IPO. It means that initial coin offering will be regulated by SEC (Securities and Exchange Commission). This regulation applies to those tokens that are issued as an investment in enterprises for profit.
According to the SEC’s statements, securities laws operate in the same way, regardless of whether it is a traditional company or a blockchain start-up.
It also does not matter what kind of money are used to buy these securities: fiat or crypto-currency.
At the end of 2017, the SEC has already commenced a fraud case during the ICO. The businessman Maxim Zaslavsky was accused of two companies Diamond Reserve Club World and REcoin Group Foundation. It turned out that these companies did not conduct any activity, and their tokens did not exist at all. The SEC got Zaslavsky’s assets frozen, and the case was transferred to the federal district court of Brooklyn.
Another important law from the US: celebrities who promote tokens and ICO, should disclose the size of the salary. Failure to do so is a serious violation of US federal laws.
Canada acts in the same way as the US. Regulatory issues are handled by the Canadian Securities Administration. ICO organizers will have to agree in advance the release of tokens. And companies must comply with the requirements that the Canadian Securities Administration set out in this document.
In addition, Canada offers to consider each ICO separately, but this is only an offer so far.
Do you think regulation in the US and Canada will simplify the lives of investors and organizers of the ICO? We think that yes, because unscrupulous companies can not deceive people. But there is nothing to be afraid of honest ICO .. What do you think? Write in the comments!
