December 22nd 2016
ICO Issuers Must Self-Regulate While Regulators Get Up To Speed
An Initial Coin Offering has become a popular way for virtual currency entrepreneurs to raise funds for a new project or concept. This type of venture capital model, a hybrid between initial public offerings and crowdfunding, has been used to finance many virtual currency projects. However, as state and federal regulators have not enacted disclosure regulations that are specific to ICOs, there is little protection for investors. In order to maintain investor confidence, ICO issuers must proactively self-regulate and engage in responsible disclosure practices until a regulatory framework is in place.