ICO regulation in the EU

[dnpotter]

In the EU, are tokens subject to regulation or is it the activity of raising funds using a token that is regulated?  Is it different in other parts of the world?

Cheers.

[1714851024]

1714851024

[STT]

I believe it varies by country, mostly the open tracking of those who invested in the project and what amounts I think is the most frequent requirement along the lines of Know your customer type legislation.   Its also possible in some parts of EU its still not a requirement because not all tokens have a relation to money directly, that is the origins of BTC to be secure not exactly finance dictated.

[dnpotter]

I believe it varies by country, mostly the open tracking of those who invested in the project and what amounts I think is the most frequent requirement along the lines of Know your customer type legislation.   Its also possible in some parts of EU its still not a requirement because not all tokens have a relation to money directly, that is the origins of BTC to be secure not exactly finance dictated.

Yeah I think that fits my understanding.  It's the activity of converting between the token and fiat that concerns regulators.  So that would mean the ICO, exchanges and any other platform that provides a conversion service must comply with KYC/AML regulations while the token itself is free from regulation.

I've heard that some tokens may be classed as 'financial instruments' while others are not.  I don't know if this has any impact on regulation?

[avikz]

In the EU, are tokens subject to regulation or is it the activity of raising funds using a token that is regulated?  Is it different in other parts of the world?

Cheers.

Legal structures and regulations are always different in various parts of the world, that goes without saying! ICOs are being regulated under "crowdfunding" regulations in Europe if I am not mistaken! So some sort of regulation for ICO is already there in Europe.

There are countries like China or Bangladesh which had banned ICOs completely! But majority of the ICOs are still remains outside the jurisdiction of regulatory agencies, especially the ICOs popping up from Small island countries like Malta, British Virgin islands etc.