Initial Coin Offering Services and the Cryptocurrency Landscape in 2021

initial coin offering services

The blockchain industry has come a long way over the last few years. From the creation of Bitcoin to the ICO boom at the end of 2017, the industry has seen explosive growth over the years. How can Initial Coin Offering Services help you in 2021?

However, the initial con offering market has slowdown though the amount of money raised didn’t slow down at first. According to CoinDesk, projects raised about $5.5 billion through 2017 and $6.8 million through the first part of 2018.

A few of the biggest early ICOs such as Augur’s REP (trading at $25.53), Bancor’s BNT (trading at $3.63), and 0x’s ZRX (trading at $0.86) are still doing well.  ICOs provide an innovative vehicle for startups to potentially access capital and grow their projects. If you want to raise funds for your business with ICOs but have no idea where to start, reach out to TokenMinds. It is best known for supporting newly ICO projects.

New York Initial Coin Offering

The SEC published a framework for analyzing the circumstances under which a digital token would be deemed an investment contract and thus a security. Particularly, the framework applies to the Howey test which determines whether digital tokens qualify as “investment contracts” and therefore securities.  Under Howey, a financial arrangement is an investment contract when there is an investment of money, in a common enterprise, with a reasonable expectation of earning a profit through the efforts of others.

So doesn’t matter what you call your token, whether it serves a function on your platform, or whether your platform is already live. If it meets the test for security, it’s security. Typically the SEC and U.S. courts use the Howey Test to define security as any contract, transaction, or scheme whereby:

  • A person invests money or anything else of value
  • In a common enterprise(which different courts define differently)
  • And is led to expect profits
  • Predominantly from the efforts of others (central management)

The bottom line is if you have a utility token with security‐like features, or if it otherwise meets the Howey test, you have to treat it like a security. In addition, you have to do AML/KYC if you plan to sell ICO tokens to U.S investors. Remember, it is illegal to sell unregistered securities in the U.S. This applies regardless of whether you know your buyer is American or intend to sell to Americans.

What about SAFTs? SAFTs (Simple Agreement for Future Tokens) are deemed as security and the tokens may be securities. So using SAFT doesn’t transform security into non-security.

Initial Coin Offering Regulation UK

The UK is a jurisdiction that has generally adopted a “wait-and-see” approach to the regulation of cryptocurrencies and ICOs. The UK Financial Conduct Authority (FCA) released a Consultation Paper: Guidance on crypto assets in January 2010. It also published final guidance on crypto assets in its policy statement later that year (in July 2019). It describes the extent of FCA regulation of activities relating to virtual assets and providing much-needed guidance to market participants.

According to the UK Cryptoassets Taskforce report (2018) however, the number of UK firms carrying out virtual asset activities was (at the time) small relative to other jurisdictions.

In terms of ICOs, the FCA deems an initial coin offering in London as “unregulated tokens”. As such, they fall outside the scope of UK regulation.

Initial Coin Offering Canada

Canadian regulators have remained fairly proactive in their approach toward cryptocurrency and ICOs. The regulators have taken a cautious yet optimistic stance in an attempt to promote innovation while still protecting investor interests. 

For example, Canadian businesses dealing with cryptocurrency (such as crypto exchanges and ICO projects) must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as a money services business (MSB). Registration means that these enterprises are subject to regulatory oversight and reporting requirements. So, these regulations would help squeeze out fraudulent actors and allow awful players to provide higher levels of investor protection.

The bottom-line is the Canadian securities regulators will evaluate ICOs on a case-by-case basis.

Initial Coin Offering in India

The Securities Exchange Board of India is deliberating upon a regulatory regime governing ICOs. It would be interesting to note whether this regime takes a form of an absolute ban on ICOs. Another option would be to provide a framework for regulating ICOs.

And the issuing companies floating ICOs in India can also become under the compliance required by the Companies Act, 2013. This act prescribes a rigid set of compliances that companies must follow while issuing securities and accepting deposits to and from the public.

The newly proposed Banning of Unregulated Deposit Schemes Bill, 2018 by the Indian Parliament could also have a huge impact on the future of ICOs in India.  This bill will provide comprehensive legislation to deal with illicit deposit schemes. Through inter alia a complete prohibition of unregulated deposit-taking activity. Also via deterrent punishments for promoting or operating an unregulated deposit-taking scheme.

TokenMinds ICO Marketing Services

Frankly speaking, launching a new cryptocurrency is risky and complicated. However, if you do things correctly from the beginning, you can expect a successful outcome. And while the legalities and regulations surrounding ICOs are evolving, there are concerns the growth of the crypto itself could outpace them.

Launched in 2015, TokenMinds offer initial coin offering services for blockchain companies looking to build a supportive community, create brand awareness, and achieve crowdfunding success. More specifically, we provide ICO services such as influencer marketing, PR and media outreach, ICO fundraising and exchange listing, and more. In terms of ICO marketing and community building, TokenMinds is clearly one of the best. We have an incredibly strong network of investors and media connections as well as a team of marketing experts who can bring remarkable success to your ICO strategy.

Request a free consultation today to see how our initial coin offering services can bring more success to your project!

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