ICO legalities in 2020?

[boris singer]

Even though ICO's have lost the appeal lately.

I was just wandering about the legalities. The SEC website confuses me. In the eyes of the SEC are true utility tokens still classed as securities in the USA? Is this why many companies avoid the USA when it comes to ICO's?

If a company from outside the USA releases a token, do they have to comply with SEC regulations to enable usa investors?

I am not from the usa but live here now. Is it a resident or a citizen issue?

https://www.sec.gov/oiea/investor-alerts-and-bulletins/ia_initialexchangeofferings
all answers are in the SEC official document last January 14, the point remains the red flag for wherever the promoter is located involving US citizens. I have never read anything legal from their regulations regarding the crypto offering system, even they also did not write about STO. If your residence card is not in the US, you can still join ICO and IEO using a privacy network.

[naikturun]

yes maybe that's why some projects that originated in America made their ico in another country, maybe because of the complicated requirements so they moved it.
even as Korea did in other countries, maybe Southeast Asia such as Singapore and others.

[superving]

Even though ICO's have lost the appeal lately.

I was just wandering about the legalities. The SEC website confuses me. In the eyes of the SEC are true utility tokens still classed as securities in the USA? Is this why many companies avoid the USA when it comes to ICO's?

If a company from outside the USA releases a token, do they have to comply with SEC regulations to enable usa investors?

I am not from the usa but live here now. Is it a resident or a citizen issue?

investors are afraid to ico projects and its not easy to bring back the credibility of ico projects with just that.  Accept that ICO are no longer existing,  another projcets will come replacing sto,ico ,projects.

[monineklutak]

yes maybe that's why some projects that originated in America made their ico in another country, maybe because of the complicated requirements so they moved it.
even as Korea did in other countries, maybe Southeast Asia such as Singapore and others.

I prefer projects from the USA with a record of having legality, but if not I will avoid it, many USA projects will end up dead because they are followed up by the SEC

[Amel]

if your country prohibits cryptoqurrency then the main problem is the government in that country. residents or citizens generally will always follow the regulations of their respective countries. if the American state legalizes the cryptoqurrency industry and the citizens welcome it well then that is positive news for the crypto market especially for users in that country.

Banning the use of decentralized cryptocurrencies and banning initial coin offerings are 2 different subjects. SEC is saying that it's trying to prevent fund raising (that can be scams) that profit centralized companies. Banning something decentralized on the other hand is next to impossible.

It is not possible to ban decentralized companies but it is still possible to forbid its people to invest, such as the US which enforces KYC policies on ICO companies that want to reach US citizens, this is an effort to avoid scams. Fundraising in my opinion is still legitimate in the US, as long as according to local government regulations and policies, maybe only the US that applies it for now, because they also see it as a business to make money from taxes.

[killerfrost]

Even though ICO's have lost the appeal lately.

I was just wandering about the legalities. The SEC website confuses me. In the eyes of the SEC are true utility tokens still classed as securities in the USA? Is this why many companies avoid the USA when it comes to ICO's?

If a company from outside the USA releases a token, do they have to comply with SEC regulations to enable usa investors?

I am not from the usa but live here now. Is it a resident or a citizen issue?

Usually such ICOs will not allow citizens of the United States and some other countries to participate in their ICOs. So they don't need to be afraid of SEC rules, since there are plenty of ICO scams in this market and stealing a lot of investor money and they don't need to be scared of anything. The current ICO is not a good investment choice, IEO is a much better option

[tsaroz]

It would be really difficult to pass yourself from each and every countries governing ICO screening so it would be better to make a global less strict ICO license which would be valid worldwide while having a stricter on the judiciary the ICO project has it's office in. Both the project and the investors should have a choice about where to be regulated.

[princecharles]

The issue of ICO legality is dicey. I know several projects don't allow investors from the United States to invest in their projects. This is simply because SEC could prosecute any project who plays a fast one on united States citizens. The arm of the law is very wide from the United States and could reach out to project owners irrespective of their country of origin. To avoid this issues with the government of United States, they exclude the United States citizens.

[judeafante]

Even though ICO's have lost the appeal lately.

I was just wandering about the legalities. The SEC website confuses me. In the eyes of the SEC are true utility tokens still classed as securities in the USA? Is this why many companies avoid the USA when it comes to ICO's?

If a company from outside the USA releases a token, do they have to comply with SEC regulations to enable usa investors?

I am not from the usa but live here now. Is it a resident or a citizen issue?

I guess they do not want to encounter a problem with SEC, they forbid their people to participate in these kinds of investment and if many US citizens invest and the project run into a problem, they will have issues with SEC and CIA, something that they did not want to happen.

[Twentyonepaylots]

yes maybe that's why some projects that originated in America made their ico in another country, maybe because of the complicated requirements so they moved it.
even as Korea did in other countries, maybe Southeast Asia such as Singapore and others.

This is precisely what most ICOs did. US SEC is fairly strict when it comes to ICOs which could be caused by the fact that most scam projects last 2018-2019 came from ICOs. They ensured that no US citizen gets scammed off and is partly the reason why ICOs have a bad reputation as well as of now. If this carries on I believe this will be the end for ICOs. They have already been hit several times with issues that greatly degraded their reputation to the general public.

[GideonGono]

It would be really difficult to pass yourself from each and every countries governing ICO screening so it would be better to make a global less strict ICO license which would be valid worldwide while having a stricter on the judiciary the ICO project has it's office in. Both the project and the investors should have a choice about where to be regulated.

If ever they've already accept the legalisation of ICO then they have the rights on what possible happen and also it would go through government before creating ICO but that was good for us because it can reduce the possible scammer by doing that.

[travwill]

Take a look at what is happening now with the project of Pavel Durov called TON. Due to the fact that the project was selling coins to U.S. citizens, regulators took over it in full.
The project would have been closed long ago and outlawed, but regulators cannot decide on the legal status of the project token.
They would very much like to confer the status of securities on the tokens and call the fundraising illegal so that the project will return the funds to investors in full and send the consequences to Pavel himself.

Alas, these are the realities. Decide whether your token will fall under the definition of "securities" or not will the US regulator, if you happen to sell coins to the citizens of this country.
Yes, that's why many people bypass the US market so as not to interfere with their legislation.

[tartibaya]

In 2020, ICOs may rise again. I think it is necessary to follow this year well. IEOs were popular last year. I think it will be back to old. The market can be in a cycle, or in trends in a cycle. I think Binance can break dominance.

[kesmex]

Take a look at what is happening now with the project of Pavel Durov called TON. Due to the fact that the project was selling coins to U.S. citizens, regulators took over it in full.
The project would have been closed long ago and outlawed, but regulators cannot decide on the legal status of the project token.
They would very much like to confer the status of securities on the tokens and call the fundraising illegal so that the project will return the funds to investors in full and send the consequences to Pavel himself.

Alas, these are the realities. Decide whether your token will fall under the definition of "securities" or not will the US regulator, if you happen to sell coins to the citizens of this country.
Yes, that's why many people bypass the US market so as not to interfere with their legislation.

each country has its own legitimacy towards cryptocurrency, in the USA, Russia, China, Japan, everything is still open to cryptocurrency, but for the USA and China a little different, there are very tight regulations, market prices are very influential if news from that country comes

[LbtalkL]

The US is very cautious about these ICO's they didn't want US citizen to be a victim of a possible scam, US is very strict in everything that is why most ICO is not including US citizen. I think currently most projects don't comply they just exclude the US from the sale. Projects implementing KYC to determined US citizens I guess if you are from other countries like asia and you have ID from asia you can participate even if you are in us now but I am not really sure.

[asyakashi]

I hope that ICO will rise again and find new ways to convince investors that ICO is not a scary thing.
I want to join some ico and increase my crypto assets.

[Sithara007]

The US SEC has a long arm to prosecute, expose and jail any violators so the ICO developers did not include US citizens they do not want the SEC to come after them because it's citizens loses money on their project, so it's better that they play it safe by not including US citizens to their potential investors.

Have to agree with the SEC here. During the past two years, there have been thousands of scam ICOs and the investors lost many billions of USD worth of funds in them. Ironically, I can still see people investing in ICOs and losing money. I have nothing against the ICOs in general. But from 2018 onward, ICOs have become a weapon at the hands of scammers. They have realized that it is one of the easiest methods to skim people of their hard earned money. And until there is no other alternative to prevent such scams, I am going to support the SEC.

[release]

The US SEC has a long arm to prosecute, expose and jail any violators so the ICO developers did not include US citizens they do not want the SEC to come after them because it's citizens loses money on their project, so it's better that they play it safe by not including US citizens to their potential investors.

Have to agree with the SEC here. During the past two years, there have been thousands of scam ICOs and the investors lost many billions of USD worth of funds in them. Ironically, I can still see people investing in ICOs and losing money. I have nothing against the ICOs in general. But from 2018 onward, ICOs have become a weapon at the hands of scammers. They have realized that it is one of the easiest methods to skim people of their hard earned money. And until there is no other alternative to prevent such scams, I am going to support the SEC.

I understand your position of course.

If a company registers its token as a security with SEC we can all agree that it is legitimate?

[Lantind]

In 2020, ICOs may rise again. I think it is necessary to follow this year well. IEOs were popular last year. I think it will be back to old. The market can be in a cycle, or in trends in a cycle. I think Binance can break dominance.

Where did you get the information that for this year ICO will increase again? because until now investors have begun to diminish to believe in the ICO, and the problem of binance will undermine domination is not a problem because binance is a great and good exchange and makes it able to compete with others.

[makishart]

yes maybe that's why some projects that originated in America made their ico in another country, maybe because of the complicated requirements so they moved it.
even as Korea did in other countries, maybe Southeast Asia such as Singapore and others.

I prefer projects from the USA with a record of having legality, but if not I will avoid it, many USA projects will end up dead because they are followed up by the SEC

There is only one project that called blockstack and it's already received approval from SEC but when you are saying you prefer with USA project and it looks like that doesn't make sense caused by the majority of projects that were coming from USA was not getting legalization.
The fact that if USA project must be avoided caused by strict regulation that already implemented by SEC. It looks very strange if you are still preferring to invest in USA based crypto project.