As you know, Armenia is open to always new and sees big potential in the developing technologies and new tools for various fields of business. Obviously this refers to the digital world closely connected to blockchain, cryptocurrencies and ICOs. However, not all countries are as positive on this industry as others, for example, the USA.
Let’s look into the reasons for that.
The United States of America is among the top picks for cryptocurrency businesses and ICOs in particular.
However, even the projects and companies that have opened a representative office in the US for conducting an ICO and issuing tokens often use another legal entity in jurisdictions where such activities are openly welcome, or when the question of legality has not yet been established by the time of the token sale.
Another concern is the fact that US citizens and residents participation in token sales is limited. This is due to the country’s stocks and securities trading legislation.
Many projects dream of someday conquering this market. But why are ICOs banned in this country? They were never banned, just regulated.
In July 2017 the SEC has issued a statement that tokens can be considered securities, provided they meet certain requirements (such as voting rights, stake in the company, promise of profits, etc.).
To determine if the token is a security it is run through the Howey Test, Family Resemblance Test, Capital Risk Test and some other additional tests. The SEC has also issued a number of documents warning future investors of possible risks pertaining to ICOs. This is why, as we have said earlier, companies from the US choose other jurisdictions to issue tokens so both their investors and themselves don’t have to jump through unnecessary hoops.
All these restrictions concern other ICO projects everywhere in the world. Many ban US investors from participating in their projects.
The prospects of development for ICOs in that country are, at least for now, rather fuzzy. The US is most likely to remain popular as a place for headquarters, while tokens within ICO campaigns will continue being issued in other, more suitable jurisdictions.
