🍀 The UK financial regulator is studying a new method of attracting financing and notes that many projects fall under the UK regulatory framework.
🦋 'The ICO is a problem that the Financial Regulation and Supervision Authority of the United Kingdom (FCA) knows and is studying,'🦋 the press service of the department told the Financial Times.
🍀 The April newsletter of FCA noted that Initial Coin Offering has much in common with such methods of raising capital as Initial Public Offering, private placement of securities or crowdfunding.
🍀 Depending on how ICO is structured, projects can fall into the regulatory perimeter of management, the document said.
🍀 Thus, the FCA recognized that the rules protecting investors and providing disclosure obligations to the issuing company may be applied to the ICO depending on their structure.
🍀 Previously, the ICO was banned in China, where this method of attracting funding was declared illegal. Financial regulators in the US, Singapore, Canada and Hong Kong announced that the primary location of tokens shares similarities with the sale of securities, and therefore must be conducted in accordance with existing securities laws.
🤗 source:cryptocurrency.tech 🤗