why don't ICOs accept fiat?

[Deylandra]

I've been researching ICOs and I'm wondering why no ICOs appear to accept fiat?

I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.

They could also accept checks, bank wires, transfers, Zelle, etc.

Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.

I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.

Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.

Is there anything I'm missing?

[Ix]

Accepting fiat requires some form of connection to the traditional infrastructure. AKA much easier to track and find people taking your money. I don't pay any attention to ICOs so I don't know what percentage are shady people with prebuilt websites, but I assume those types sure as hell wouldn't want any real identity connected to them. As for the rest who pretend to have good intentions, it actually would require effort to accept fiat instead of copying and pasting the exact same thing thousands have done before them.

[cryptosifu]

There are a lot of ICO's that are on the Ethereum platform which is on a smart contact.  Ethereum will be the only cryptocurrency that is accepted for these ICO's and you'll receive your tokens instantly. 

[xcbjsuw]

I've been researching ICOs and I'm wondering why no ICOs appear to accept fiat?

I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.

They could also accept checks, bank wires, transfers, Zelle, etc.

Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.

I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.

Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.

Is there anything I'm missing?

Not all ICO can accept FIAT, maybe if using FIAT is too complicated. that's my opinion.
Anyways ,. easier to use crypto.

[varandas]

there`s a lot more work to do, papers, accountants)

[kiw_91]

Accepting FIAT bounds that company / person to a certain level of law. For example, Malaysian government does not allow the receival of FIAT deposits except banks. This is stated in the  Banking and Financial. Institutions Act 1989. Unless you are a public listed, you are forbiden to receive FIAT. Its easier for them to receive crypto as not many country regulates this. And its harder for the government to audit. 

[allycn]

It may have to do with the idea of remaining anonymous. If you pay via Credit Card / wire transfer you are leaving a trail to your crypto funds. It could also be for some of the legal issues you point out.

Although,  I've seen some ICOs accept FIAT via credit card and wire transfers, some require a very high investment to accept those payment methods. The issue for me (as I normally invest a small amount in ICOs) was the high fees. Credit card commission could be up to 25% and wire transfers in my country are expensive, so if you are doing a small investment it is not worth it. The best option for me has always been ETH (faster transactions and low commissions).

[chutchmcgillicutty]

It may have to do with the idea of remaining anonymous. If you pay via Credit Card / wire transfer you are leaving a trail to your crypto funds. It could also be for some of the legal issues you point out.

Although,  I've seen some ICOs accept FIAT via credit card and wire transfers, some require a very high investment to accept those payment methods. The issue for me (as I normally invest a small amount in ICOs) was the high fees. Credit card commission could be up to 25% and wire transfers in my country are expensive, so if you are doing a small investment it is not worth it. The best option for me has always been ETH (faster transactions and low commissions).

Hide your trails haha ^


don't send ETH to ICOs from your wallet that is directly connected to exchanges.

[jsmithuk]

There are more regulations related to accepting fiat, even if an ICO claims it is not a security. For example, KYC/AML requirements for accepting fiat vs. virtual coins.

[wakeham8]

Accepting fiat requires some form of connection to the traditional infrastructure. AKA much easier to track and find people taking your money. I don't pay any attention to ICOs so I don't know what percentage are shady people with prebuilt websites, but I assume those types sure as hell wouldn't want any real identity connected to them. As for the rest who pretend to have good intentions, it actually would require effort to accept fiat instead of copying and pasting the exact same thing thousands have done before them.

good point

[feny.blackpink]

You wrong, there are some ICO that still accepting fiat to buy their tokens.
but it is not much, and may have an expensive minimum purchase.
but why dont you convert your fiat to cryptocurrency first ?

[Agent99]

I've been researching ICOs and I'm wondering why no ICOs appear to accept fiat?

I understand credit cards have the issue of chargebacks, but since an ICO often distributes the coins at a later date, they could presumably issue the coins after the chargeback period has ended.

They could also accept checks, bank wires, transfers, Zelle, etc.

Since many people don't have access to cryptos, I would think accepting fiat would increases the chances of success for their ICO.

I'm assuming it must involve legal reasons such as upsetting the Securities and Exchange Commission, or the potential of being classified as a money service business (MSB) since changing fiat for crypto could put you in that category.

Since many ICOs appear to be either scams or little more than concepts with little chance of success, perhaps it's also to prevent burned investors from taking legal action later if the project fails, since they traded one token without intrinsic value for another token without intrinsic value instead of cash, thereby making a lawsuit more difficult in claiming damages, etc.

Is there anything I'm missing?

some ICOs accept fiat bro. because they are sure from their project. there are so many ICOs that accept fiat you can search and find them. but i most of cases BTC and other altcoins traditional to participating in ICO projects.

[jeanne513lefe]

I think it somehow depends on the companies service scope. If a company's market is international and without borders, using a transaction media  that is accepted by all can reduce transaction costs between currency transfers.
The other point is that some countries forbid the purchase of some cryptocurrency (with fiat), so by trading with cryptocurrencies, they can by some content avoid the regulations.

[Deylandra]

Well more specifically I'm building/researching an ICO for my company based in California.
Most of the participants are likely to be from the United States.

Should I only accept Ether? I should I offer the entire rainbow of payment options?

I don't have any issue accepting credit cards, checks, wire transfers, Zelle, or 40 plus alt coins in exchange for the ICO tokens.
It makes it slightly more complicated but not by much. My general assumption is that the more payment options the better.

It just smells like there is a strong legal reason NOT to accept fiat. However, I can't find any specific rules in United States law that forbides it, except possibly the Money Service Business laws.

The SEC of course has not finalized the rules on ICOs and so there are a lot of grey areas. I just wonder if not accepting fiat is one of those "unwritten rules" to avoid upsetting the SEC.

Thus I suppose I'll just play it safe and refrain from accepting fiat.

[Duzenn]

It is not that ICO does not accept the law, just because there is no law to restrict ICO, so there are serious problems in the current ICO, and many projects are just a fraudulent project.

[BillCoin]

Because they can't.
Most of the ICOs remain unregulated, for the simple reason that they can't be regulated and it's going to be hard time for them to search for a country that is willing to accept them.
More then that, it's going to be even harder to find a bank that will accept them, as most of the banks won't because they will be afraid of money laundering.
Accepting fiat for ICOs means that you are legal, and being legal in the crypto wotld is really hard.

[Ix]

Well more specifically I'm building/researching an ICO for my company based in California.

Color me shocked.

The SEC of course has not finalized the rules on ICOs and so there are a lot of grey areas. I just wonder if not accepting fiat is one of those "unwritten rules" to avoid upsetting the SEC.

The SEC has made it pretty clear that using something other fiat does not exempt you from securities laws.

[Deylandra]

It's my understanding that if the ICO passes the "Howey test" the SEC is likely to leave you alone.

I can't find anything about them caring whether you receive fiat or Ether unless it's an "unwritten rule."

Perhaps I'm just paranoid and I should just accept fiat dollars in addition to Ether.

[Ix]

If you are accepting money/fiat/crypto/seashells as part of some kind of investment in your company, you fail the Howey test.

[kungfupandacoin]

There are some who accepts fiat but most of them accepts BTC or ETH because the value grows in the future.