Bitcoin Forum

I don't know why ICO system ban in
Our country (Bangladesh)  And I know
there are a few countries doing ban ICO.
But why? is ICO illegal someway?
Please kindly answer me.
Thanks

Go read up the legalities of selling securities.......cause I'll be fucked if I'm going to explain it to a newbie account from Bangladesh with dodgy English.

There are many who ask this question and many reasons for the prohibition of ico, including the disruption of the state financial order
And if there is a regulation the government should issue a law rather than a warning. And if ico supported by the state there may be income for the state treasury.

Banning the ICO, governments of different countries explain their actions primarily by the need to protect the rights of investors. The fact is that the current ICO is very risky and is used by fraudsters to collect money, after which they do not in many cases fulfill their obligations to investors and other ICO participants. For this, states use the regulation of this process of initial coin release, identifying the team and making the process more transparent. However, as far as I know, in Bangladesh it is generally forbidden to use crypto currency, and not just ICO.

There are so many countries out there who have experience like you. Nowadays there are some countries that do apply the system. Usually they are frightened because Bitcoin price spikes are sometimes beyond expectations. Naturally it is something normal, but Bitcoin is very different because Bitcoin price movements sometimes reach hundreds of percent. But you will still be able to use Bitcoin, so far Bitcoin is free to use by all countries and most importantly is when you have internet network connection then you will still be able to use Bitcoin. Firewalls created by a country will not matter because the ever increasing technology will be able to defeat any firewall. Maybe the problem is when we exchange to local currency. This should be a consideration, but once again when we have creativity then I am sure we will be able to do things easily.

There are multiple reasons for ICO ban in various countries, however the most used reason by the government is about investors protection.
As you read in most of the posts, 90% + ICOs are scams or not worthy.

ICO Ban is more like a regulation like China did earlier this year. Along with this, there are times, when there are whales working along with financial bodies in a country to bring down the prices, accumulation and removal of bans later to spike them up.

In my view, even though certain countries are banning ICOs, the investors from these countries make there own way to join ICOs as well.

Because many ICO does not have regulation, this case can be any fraud in ICO. In my opinion ICO regulation is very important to avoid any fraud or money laundry. In ICO some developer of project can collect a million dollar from ICO participant, if they run away and us all the money for ilegal action then will bad for country. With any regulation will protect investor from fraud.

ICOs are the projects that do not pass their identity verifiation over centre authoritatives. Some ICOs keep themselves anonymous by using fake details that actually doesn't belong to them.
Thus the investors make contributions and get scammed at last without getting anything in return.
Country may face financial troubles if they allow people to invest in ICOs,therefore your government doesn't allow ICOs

They are banned in some countries because anyone with enough knowledge about developing a cryptocurrency or token can do this and start their own coin offering and most developers use fake projects to scam their investors but some projects are really worth investing. That is why some government are stepping up, it's either they will ban it or they will find a way to regulate it to protect investors from their country and also governments will find a way to get benefits from ICOs.

It is because the governments do not understand and are fearful of the technology or they see it as a vehicle just for scamming investors (granted there are a lot of scams out there) - the argument is used that the government is regulating/banning in such a way to 'protect' inexperienced investors from losing money

ico raises investors' funds without a clear guarantee. the reason is fraud

ICO being ban in some countries maybe because they consider cryptocurrency token sales to be an unauthorised and illegal public financing activity, which involves financial crimes such as the illegal distribution of financial tokens, the illegal issuance of securities and illegal fund raising, financial fraud and pyramid schemes & disrupted financial order in their country.

One of the role of a Government is to protect their citizens including their finances, so if we all agreed that most of these ICOs will either fail in long run who will bear the loss, so what they are trying to do is to prevent their citizen from this coming loss.

In my country the government does not allow Bitcoin to trade but they still allow for investment, maybe in your country the economy is affecting the politics so the government puts the law Banned the ICO

Nowadays a flood of ICOs in crypto market and many new ICOs not do as per their commitment and many investors get loss lot of money because of no regulation about it. Many countries don't want their people to loss their hard earned money in shady ICOs and for safeguarding their peoples interests they are banning ICOs.

because many countries wants profits from them and for the moment cant have:)

One of the reasons why they want a regulation with cryptocurrencies is because people earn money here without any tax. So sometimes they think it is illegal.

as domestic regulation leads to the building of arrange with the customs of work with the ico schemes,
the systematical gives of reference as the use to helps of beginner start up company to raise funds as entering field of business.

perhaps many countries are banning as in my country the government does not let Bitcoin trade but they still allow investment, maybe in your country the economy is influencing politics so the government puts the law to ban ICO because it might be considered to be affecting the economy.

Because ICOs are being misused by some greedy people to collect and scam new investors,thats why some government are protecting their people.

Some scammers make use of ICO to cheat people for money , and run away . Maybe the government want to protect people from scam , so they ban icos.

It is normal that the current ICO market does not have a very good regulation to regulate, so it looks more like a bubble and does need regulation.

Why are countries so afraid of bitcoin?  In my opinion, the leaders of the country do not know how to control this process to take taxes from it. That's why they are banned.

You are right, ICO seems to be too easy to raise a lot of money and it is a high risk investment, if the project failed, it may cause some panic investors that is not good for government regulation.

There is no one giving answer or taking stand for Us. >:(

Because it is being mistakenly used to scam a lot of newbie investors,thats why countries are being protective to their assets which is the people.

To my mind this is due to number of scams based on ICOs.
People are now using ifos to scam tho, so not sure if it's worth banning.

I don't know also, it made me curious if this ICO was a legit one or not. My friends tell me that this is not illegal but not also legal and then I found a site that lead me to the conclusion why they ban ICO which is maybe because It can cause bunkruptcy I think.

I think this is not only happening in my country (Indonesia) but also in many countries. in my opinion, this is more the way the government protects investors and money laundering practices. but with the KYC is a little help. hopefully there is a breakthrough for ICO legalized

Because there are just to many option for ico founders to scam their investors and run away with the money without any risk for them.There just arent any legal boundaries for ico founders to follow as in most cases ico goes international and the laws aint the same in all of the countries

these are attempts to protect their own economy and business. perhaps it's even good for small countries. In addition, it often deceives its investors.

I think because your state does not have accurate circulating ICO. They can not manage it. easily lead to inflation and money laundering. But I think the sting is that the state can not charge the ICO to contribute to the state treasury

A simple explain to this will be . They want to protect investors from getting scammed . ICO gained a very bad name to it , How many millions lost to a fake ico !! . This money lost is money going out from a country , Which they will never see again . This might be the simplest dumbest way to explain this :D

Yes, ICO is a very high risk investment and many greedy dev teams are trying to raise a lot of money, I think the government should regulate this market, but they should not ban them.

Because the governments can't regulare ICO's, they feel it's one way for people to launder their money & evade taxes. The Govts survive on taxes.

Because it is being used to scam people,ICOs are just causing people to lose their money instantly thats why the government is protecting their citizen.

ICO ban or regulation main reason are uncontrolled growth and fear of collapse from those initial coin offering that would end up failing all people who invested in that project. Serious note, I don't have the definite reason behind it, but I think they want to regulate and also collect tax from investments being made and transactions using ico. Some ICO turned out to be a scam and ponzi.

Maybe because majority of previous ICO collapse after being introduce in tha market and government needs to protect their country especially their people in incurring losses from these ICO investment also one reason is that some countries only support bitcoin or are preparing to have their own coin t that will be introduce and use in their market.

One the reason is decentralization because govt. don't have control over organization when organization operating on token which creates by organization itself. Here govt. think about revenue which come from taxes or other duties. but after ICO revenue get decrease thats why some counties does not supports ICOs.

ICOs are being misued by certain individuals but there are a legitimate way for many honest businesses. Which is the latest ban?

Maybe people are making too much money in the ICO's that people in the Government are starting to get angry.

Some countries are banning ICOs because of the scammers you mentioned is hurting a lot of innocent people's investment money. And some countries are tryng to regulate by putting some strict rules.

Well, most obvious reason is that goverments are trying to "protect" their people and citizens from scam... But in reality - they are scared of uncontrolable sources of income and anonimity of such projects.

It is down to government procedures, they are not illegal until the country bans them.

It is because they are unregulated and hard to control, but I think banning them isn't great.

Why they didnt stopped bitcoin ICO and why the bitcoin CEO made it very privately . at start everything is NO but different moves will make things possible and governs will say YES at last

Because government is trying to "protect" investors from scams that collect money through ICO and they disappear. I personally don't think that it is true, but what can we do  :-\

Many fraudulent ICO conduct, collect money and disappear with them, people go to complain to the government and catch no one gets, so it's easier to ban.

It would be good to make a list of such countries, given the description of the individual characteristics of such a ban and the perspectives of its removal.
In contrast, indicate the countries that on the contrary support the ICO and those who are still in neutral status regarding ICO.

There is a risk that it could be used to fund crime or illicit terrorist activity.

Some countries are banning or regulating cryptocurrencies in order to protect their sovereign fiat and resources and they think that the people would be able to lose their investment and in that way they will lose also portion of their money into outside of their country and that would bring both impact on their global economy growth.
But with some countries that are adapting cryptocurrency that one of their ways to evolve and increase the stability of their economy are now making some developments into state backed digital currencies.  

Because they can't be bothered to implement a law that will allow it. if you want to trade in crypto then go for privacy coins like XSPEC or deeponion which have low market caps but a great product. They will boom this year in 2018

Because some ICO's are scam and just run off with people's money
and they technically raise money illegally
Which is why countries like China temporarily ban ICOs, to prevent scam.
And this is why China is planning to regulate them.

Well I think there are many countries who banned/ made bitcoin and other cryptocurrencies illegal. Even in Bangladesh I think bitcoin is not allowed, is it? Most of them would have done it so that the people living in their country don't get scammed as you know there are alot of scam ICOs and scam shitcoins which are emerging as more and more people want to get into crypto and multiply their money.

Governments are just protecting their people from these ICOs,most of them are getting a lot of money raised from the peolple but the project will still faill.