Source: EAST NEWS
The decision that was made recently by the US Securities and Exchange Commission ), Should have a strong impact on the crypto currency market in the near future. The question is that the regulator recognized the tokens that are used in the conduct of the ICO, securities. Accordingly, once such assets are conducted operations, they must fully and completely comply with the norms of US law. Of course, in the event that transactions are conducted with the participation of companies registered in the US
The turnover of funds for the ICO has already exceeded $ 1 billion. According to the analyst firm Smith + Crown, various organizations have attracted to the ICO since the beginning of the year more $ 1.1 billion. Moreover, there were not so many campaigns to raise funds-about a hundred. In the second half of this year, another 100 organizations plan to hold an ICO and raise a certain amount of money in the crypto currency. Accordingly, the volume of operations at the end of the year may double.
The investigation of the American regulator, first of all, concerned activities of the participants of the project The DAO, who conducted one of the first ICO, having collected considerable funds. So far, the US government does not intend to take any actions with respect to this project (it is, for the most part, the possibility of punishment for illegal activities with securities). But what will happen next, while no one knows, although it is already possible to say with certainty that the regulation of the circulation of digital means of payment by the state (not only the US) will only increase.
The DAO organizers managed to raise about $ 150 million in the equivalent of Crypto-currency. True, because of the vulnerability in the DAO code, attackers last year increased more than $ 50 million from
This amount, provoking a crisis in the community of "broadcasters" (meaning the crypto currency Ethereum). Nevertheless, in a short time, The DAO was able to develop and become the largest crowd-organizing organization in the world. Last year, the holders of the tokens could vote for various areas of the company's work, as well as get their share in the total capital.
According to the financiers, the DAO was very lucky that the regulator decided not to punish the organizers. He could do it, and all the Commission's actions would fully comply with the norms of American legislation.
What is ICO in general? So, the basis of initial coin offering are tokens. Their release occurs by adding to the block of transactions a transaction with their description, quantity and unique ID. After tokens are released, any number of them can be sent to any system purse in the blockroom. The ICO itself represents the sale of its tokens in exchange for stable (or relatively stable) crypto-currencies. This activity is regulated, mainly, by market participants with authority. Before ICO, a certain threshold is established, the amount of funds to be achieved. If the fees do not reach this threshold, all funds are returned to investors.
Just last year, the US Securities and Exchange Commission began an investigation, the results of which were to help to answer the question of whether tokens are securities or not. The answer was positive, which means that both the release of tokens and their purchase and sale were to be completed in full and in accordance with the procedure provided for by law, with the issuer's registration and disclosure of information about it.
According to RBC, a security can be such in the US only if certain conditions are met. First and foremost, these are investments in capital, the existence of a joint venture, the expectation of profit and the limitation of participation in the management of the company. According to officials, The DAO tokens fully met all the above conditions. For example, there is a wait for profit. The matter is that the project currency was bought by participants for Ethereum, and investors, certainly, expect profit at carrying out of various transactions with криптоалютой.
However, experts on crypto-currencies say that not all tokens of various organizations can be recognized as securities. The fact is that in some cases the investor does not make a profit and does not expect it. This means that one of the main criteria for describing securities is missing. As an example of a lack of profit, one can cite the ICO, conducted by one of the founders of Mozilla for its browser based on the Brave blockbuster. In this case, the token entirely depends on the users viewing the advertising system, that is, it is not a security.
In addition to Brave, other tokens are known, which are not securities. For example, a distributed network Filecoin suggests using its tokens to pay for file storage services. That is, the file holders can pay this crypto-currency a certain amount of file space on the company's servers. Kik's messenger is going to issue Kin's crypto currency so that users can make payments within the platform.
Understanding the diversity of crypto-currencies and their features is quite difficult now even for a specialist, not to mention less-savvy ordinary users. That is why, because of the diversity of the crypto currency, the Commission decided to release the responsibility of The DAO organizers and initiate an investigation into other tokens.
What awaits ICO in the future?
In general, the work of the Commission simultaneously added concerns to the organizers of the ICO. But all this can lead to the fact that ICO will become more safe for all participants. The regulator has yet to understand the ecosystem of tokens. According to Filecoin, the Commission should develop a simple yet reliable way to separate the "seeds from the chaff", that is, organizations with tokens that can be considered securities from organizations with tokens that do not fall under the definition of "security paper". One way to determine – to see what the ICO organizers promise the participant. If it comes to the fact that investors receive a certain share in the company and the opportunity to make a profit – then this is definitely a security. If not, then most likely not. More precise criteria will be developed in the near future.
As far as we can judge, many people wishing to hold a public release of cryptonyms will not at all be eager to deal with a financial regulator. Probably, before the launch of the ICO, the organizers will try to avoid tokens falling under the definition of "security paper". At the same time, representatives of some organizations blocked the access to their sites from American IP-addresses during the ICO. Now this trend will only increase.
As for Russia, at present this part of the market is not regulated by the crypto currency. The Russian authorities only carefully study what is happening, trying to form their opinion on this.
As for the ICO global market, the regulator's requirements can affect it positively. The fact is that in this case the crypto currency market will receive sufficiently clear rules that unify the work of many organizations. Most likely, there will be less cases of fraud, because additional security measures will help to identify the intruders in advance.
Now the problem is that the ICO mechanism is not legally fixed anywhere. And this means that no ICO participant is protected from scammers in any way. If the organizers of ICO are ordinary frauds, crooks, then investors can not do anything. During the ICO, incidents often occur. For example, with the initial placement of tokens by Coindash, the money of investors went to the purse of the burglars. And the attackers did not use any tricky technology, but simply hacked the not too complicated website of the company, and placed their wallet on the main page instead of Coindash purse. As a result, investors lost more than $ 7 million. Some of them blame the incident for the company itself, and it is justifiable. After all, if someone conducts the ICO, then the organizers must ensure the safety of money sent by depositors. To avoid such situations, experts consider it necessary to carry out financial and legal regulation of the ICO.
This point of view has opponents. For example, Pavel Durov believes that the Commission's actions should have a negative impact on the competitiveness of US companies and start-ups. "Well, SES simply forbade American companies to participate in the future of the global economy," he said.
Indeed, even before the announcement of the Commission, the organizers of a number of ICO warned that investors from the United States can not participate in investing. Most likely, in order to avoid contact with the SEC, the organizers of the ICO will massively avoid working with the Americans. However, the same European Commission, most likely, after the United States will begin an investigation into the status of the tokens and in the end, the primary location of the tokens will be regulated by the agencies of many countries.
However, the crypto-currencies are gradually recognized as official financial More and more countries. Journalists of Venture Beat described this as the end of the "Wild West era" for crypto currency. This has its advantages, but there are also disadvantages. So far, as far as we can judge, there are more advantages, but the future can present many surprises.