New Regulator Warnings About Initial Coin offerings For 2018

ICO has become an incredibly popular phenomenon that is taking the word by storm in the last few months. There are now many new companies launching their initial coin offering and it’s obvious that so much movement is gaining the attention of a large number of regulatory entities all over the world. We are yet to see how things are going to evolve, but we can already see a tendency to keep things in order and there is evidence on how things will evolve. 

Not long ago, China made the news when they decided to prohibit the ICOs, shortly after they began to gain momentum. The decision of the Chinese government was the one thing that set other regulatory movements in action and this is a growing concern in the cryptocurrency world. 

The Financial Services Agency of Japan issued a statement that goes into details about the risks involved with ICOs. In his statement, the regulator was quick to warn that these coins can lose value in a heartbeat and this can easily leave a bunch of people with no money in their pockets. The potential for pump and dumb is extremely high and this is a very valid reason to properly regulate these companies in order to avoid that kind of scam. 

Regulators have also warned that ICO’s will need to comply to a large number of requirements before they are given permission for launch and this is definitely a good thing if they are to help keep things in order. It would be chaotic if anyone and everyone had the chance to come up with their own ICO without any kind of restrictions and verifications. 

In contrast with Japan, Vladimir Putin, has decided that cryptocurrency regulation is important and the ICO’s should be allowed to exist as long as proper regulation is involved. Russia believes that this is a good way to keep things in order without shutting down the beneficial potential of having more ICO’s in the country. This is definitely the kind of attitude that most countries are expected to take in regards to ICO and cryptocurrency. 

Being able to get a good idea on how an Initial Coin Offering works is extremely important. Regulation seems to be inevitable if things are to continue growing and if there is to be some kind of peace agreement between financial entities and the world of cryptocurrency. The whole process of getting proper regulations for all of these companies that want to get involved is the only way to ensure that scams and frauds are not going to be able to ruin economies all over the world. 

This is one thing that is good, because it will allow honest companies to get involved and it will keep those with bad intentions away from this kind of business model. That is going to help keep many individuals from being scammed in this particular market that is so easily twisted and so easily made to see like the perfect opportunity to turn into a millionaire.