Svetlana Rud has been working as a freelance writer , with experience gained at several media outlets around the world.
Crypto Valley Association, a Swiss-based non-profit association that promotes cryptocurrencies and the development of blockchain technologies, has announced its support for ‘careful’ ICO regulation.
Crypto Valley Association (CVA) plans to establish ICO Code of Conduct that will be a guideline for careful and safety Initial Coin Offerings (ICO) process and its regulation, according to the press release.
Crypto Valley Association is not-for-profit government-supported association founded in Switzerland in January 2017. The main aim of this association is to support the development of cryptographic technologies both in Switzerland and abroad.
Creation of Crypto Valley Association is a right and balanced decision in the period of rapid development of the digital industry and growing interest by investors.
Oliver Bussmann, President of Crypto Valley Association, said: “With the explosion of innovation surrounding blockchain and cryptocurrency technologies, it is unsurprising that organizations are leveraging similarly innovative financial instruments to raise capital. Thanks to their simplicity and popularity, the number of token launches has increased rapidly in recent months, with over $1.6 billion USD raised in 2017 alone.”
Bussmann added that it was obvious desire of the governments to control rapidly growing blockchain and cryptographic technologies in order to protect investments from any risks. “However, this growth in popularity has caught the attention of regulators worldwide, who wish to protect participants by clarifying the exact function and legal and tax status of the tokens. In addition, investors are often unaware of the true nature of their investment, and the documentation published to accompany token launches often minimizes or ignores the associated risk.”
The President of Crypto Valley Association assured that ICO Code of Conduct would help to avoid risks and to guide ICOs on proper conduct. “The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it’s our responsibility to support the industry. The widespread adoption of this framework, combined with careful supportive regulation would bring stability to an exciting but uncertain trend in blockchain.”
Another positive example of governmental support in the sphere of digital innovations is a governmental policy of the Isle of Man. The Isle of Man’s government has created a framework for FinTech and digital operations’ legalization aimed to spread token sales and provide safety and legal services. The creation of this framework was beginning in 2014 and was based on anti-money laundering rules.
Surely, this policy of the Isle of Man’s government will attract investors and increase the number of cryptocurrency start-ups. “While other jurisdictions may have done something approaching this, the Isle of Man has gone one step further by giving the financial regulator the power to inspect Isle of Man businesses to ensure compliance with these regulations. This gives any cryptocurrency business based on the Isle of Man added legitimacy as they are proven to be following the AML and KYC legislation,” said Ross Wilson, the participant of bitcoin exchange Coincorner.
By the way, the Knox Group of Companies, with headquarters in the Isle of Man, announced construction of the world’s first Bitcoin-priced development in Dubai called Aston Plaza and Residences. This project will be the first major real estate development that will accept bitcoin as payment.