Gibraltar will regulate the first country in the world ICOs by law and, therefore, a clear framework. Due to some abuse and fraud cases in the last year, investors ‘ confidence had fallen in the participation in Initial Coin Offerings.
According to a report by the Reuters news Agency, wants Gibraltar (part of the British overseas territory and, therefore, belonging to the United Kingdom of Größbritanien and Northern Ireland) as the first country in the world, a law, which governs the regulation of the Inital Coin Offering. This clear game is to create rules for ICOs and the protection of investors is improved.
So far were either only superficial or very strict decisions with respect to ICOs, such as the ban in China. As the number achieved by led ICOs in the last year of his peak, needs to be a regulation, or the creation of clear framework conditions is a logical step to the left.
The ability of an ICOs has facilitated many companies, the procurement of capital is enormous. Nevertheless, among the many trusted ICOs were fraud and theft represented. In total, over 3 million were collected in the year 2017, billion euros of capital over Initial Coin Offerings. In 2016, i.e. this value is 82 million, so this is a very clear increasing Trend.
Gibraltar Regueriung and the gibraltische Financial Service Commission (GFSC) reported the legislators that you will submit in the next few weeks a draft law for the regulation of ICOs, which is intended to regulate the operation of and the participation in ICOs. Sian Jones, Senior Advisor to the GFSC, the voice of a world-first and unique step which must be pursued:
One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorized sponsor who will be responsible for assuring compliance with disclosure and financial crime rules.
The future regulation will be taken to include rules for the disclosure of all important and relevant information for the investors, in order to make an informed decision for or against an investment. Too often in the past there were cases of fraud in which the borrowers have a lot of promise, however, directly after the end of the ICOs with the complete money in the Nothing are gone, and the donors, a large part of your capital lost.
Recently Vitalik Buterin had presented an improved Form of the ICO, the capital step by step to achieve pre-determined milestones will be released. This brings out the point of view of investors more security and confidence in ICOs.
What content will be specifically in the design of Gibraltar, it must be discussed in detail. Continue to be Alert Isola, Gibraltar executes the trade Minister that the protection of the consumer is of the highest priority:
We remain fully committed to ensuring that we protect consumers and the reputation of our jurisdiction.
A similar attitude, which ensures the protection of consumers in the focus, had taken the SEC and CFTC a few days ago, also in front of the U.S. Senate. It remains to be seen whether other countries take a leaf out of Gibraltar and their own laws and regulatory measures design.