Understanding ICO ban in some countries

[coin_newbie]

I am trying to understand what the ban of ICO in some countries mean.

If an ICO is banned in USA,
1) Does it mean its banned for all the USA citizens but a Canadian or Indian citizen staying in USA can participate in the ICO? OR
2) Does it mean its banned for everyone staying in USA (including USA citizens and visa holders)?

[nakauten]

I am trying to understand what the ban of ICO in some countries mean.

If an ICO is banned in USA,
1) Does it mean its banned for all the USA citizens but a Canadian or Indian citizen staying in USA can participate in the ICO? OR
2) Does it mean its banned for everyone staying in USA (including USA citizens and visa holders)?

As per the SEC's regulation all of the citizen in the U.S are prohibited to join any ICO campaigns they are doing this probably because they know most of the ICO nowadays are just created to raise funds and then will eventually run away from their investors,SEC is only protecting their citizens from a potential scams.That is why most of the ICO today is requiring you to undergo KYC process so they will know if you are from these countries who restricts their citizens from joing these ICOS.

[jhean_arcane]

If SEC bans joining ICO in US, then why some ICOs I read are US-based?

[CryptoAlphaStar]

You can run an US-based ICO, provided you register it as offering of securities, which is a costly process. Now the ICO becomes actually an IPO.
Selling tokens to accredited US investors is also not a problem. Selling to the american Average Joe is a problem, because the american average Joe is very stupid and always relies on the almighty institutions to protect him, after he makes tons of stupid decisions.

[dobolspeed3]

Of course this is often the case, Not all countries allow the existence of ICO. I do not know, I personally do not understand this decision, which ICO is one of the opportunities for people to make a profit.

[andrey111]

The United States has fairly strict laws when it comes to investment rules. Only accredited investors can participate in private placements of securities. Despite the fact that most ICO refers to the means of attracting investments that investors receive in exchange for their funds, tokens, and not securities, regulators may have a completely different opinion on this issue. Many of those ICOs that have already taken place can be called the traditional attraction of capital through the sale of shares.