Canada Court Holds ICO Organizer in Contempt

[BitcoinLaws]

The ICO bubble looks like it's starting to reach the end. 

The entire bubble relies on people being able to get in spontaneously with small amounts of money - most of the people who buy in to ICOs are new to investment, hence why they invest ridiculous amounts in companies with pretty pathetic backgrounds and aims.

If ICOs are regulated similarly to IPOs, it's unlikely that these people will bother getting involved anymore, just like how they didn't bother to get involved in IPOs before.

This may be a good point... but now, people may invest in ICO up to about 3 000$... in some cases, pre-sale to accredited investors may reach millions. The Canadian ICO compliance system is certainly asking works and papers, but it is far more less complicated than a traditional IPO.

Louis
www.bitcoin-law.ca

[Wheelige]

This only really impacts on the prospective businesses that have not already put in the work before any ICO to develop sound plans, show a public face and bring confidence in the product to the investors. Many good offerings already have a significant amount of information available, some even with working prototypes. It's the ones with nothing, simply asking people to throw money at them that are the issue, and removing these from the equation will only strengthen faith in ICOs.

[abitCrypto]

I think, governments needs to setup regulations and Infrastructure around ICO as fast as possible, today's economy looks vastly different than it did a generation ago. Banning is not going to solve anything.

[Almat]

If you are the organizer of an ICO and are resident in Canada, your activity is anyway covered by Canadian laws. If you scam people or make false and misleading statements about your project you breach Canada laws and are liable. Why does ICOs need a special regulation?

Really? Under what law? I don't think they will create special laws for ICOs alone if some law already covers it anyway.

[pearlmen]

via CoinDesk  https://www.coindesk.com/canada-court-holds-ico-organizer-contempt/

It is now possible to have a regulated ICO in Canada, via the sandbox program... https://www.securities-administrators.ca/industry_resources.aspx?id=1588 

So be prepare to see more and more arrest and lawsuits bring by the Canadian Regulators, on any undocumented, unverified and unregulated ICO.

I think this could be a first step to start to "drain the swamp" from scamsters to good guys..

Louis
www.bitcoin-law.ca

The court is right to hold them in contempt because that is what is expected in the case you are not doing the right thing. With further understanding of the article, I am sure its going to be one of those ICOs that does not meant well for the investors and that is why they find it so difficult to do the right thing and ensuring to keep to laid down rules and regulations now they have to face the music.

[AmXProX]

via CoinDesk  https://www.coindesk.com/canada-court-holds-ico-organizer-contempt/

It is now possible to have a regulated ICO in Canada, via the sandbox program... https://www.securities-administrators.ca/industry_resources.aspx?id=1588  

So be prepare to see more and more arrest and lawsuits bring by the Canadian Regulators, on any undocumented, unverified and unregulated ICO.

I think this could be a first step to start to "drain the swamp" from scamsters to good guys..

Louis
www.bitcoin-law.ca

Are they only regulating ICO's from developers based in Canada
or can they also penalize developers from other countries?
Most of the people that are doing ICOs are from other countries.
Hopefully other countries will do the same as what Canada have done.

Once this kind of regulation is available more investors will most likely join coming ICOs.