Gibraltar became the first country to regulate blockchain technology earlier this year. The move was bold and since then, the government has decided to earn another title for the country. Now, Gibraltar will become one of the first countries to provide regulatory framework for ICOs.
On February 9, Reuters reported that ICOs raised concerns among central banks owing to the growing interest in the crypto community. They were specifically worried about the security of people investing in ICOs, as these projects often turn out to be scams. Unlike China, who banned cryptocurrency activities completely, Gibraltar simply wants to lay down some ground rules for ICOs.
The government of Gibraltar and Gibraltar Financial Services Commission (GFSC) came to the decision in unison. A law will be drafted in the next few months, and it will cover the regulation of every activity related to ICOs in the country.
GFS’s senior advisor, Sian Jones, said, “One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorized sponsors who will be responsible for assuring compliance with disclosure and financial crime rules.”
The Status of ICO Regulation in Different Countries
Abu Dhabi, the capital of United Arab Emirates (UAE), released a statement on February 11 that explained its plan to regulate cryptocurrency exchanges, following a guidance report on the regulation of ICOs published in October, 2017. Yet, the UAE government warned users who were planning to/are investing in ICOs last week.
In 2017, Singapore’s Central Bank’s chief Ravi Menon said there was no need to regulate cryptocurrencies. However, a few members of the parliament have recently requested that the regulatory situation be considered once again. Last year, the Central Bank also published a report explaining which ICOs can be considered as securities.
South Korea and China have publicly banned cryptocurrency, but Taiwan has showed interest in developing and using ICOs and blockchain technology. Malaysia and Thailand warned users against ICOs because of the greater number of risks and fraud involved. Philippines, on the other hand, took a different direction and stated that it plans on providing rules and regulations for ICOs.
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