The trend of raising funds through ICO has seen an exponentially high growth rate in recent past.
The trend of raising funds through ICO has seen an exponentially high growth rate in recent past. The problem with this method is that investors are left with no financial compensation support or intervention by an ombudsman, as the ICO schemes don’t come under any regulatory framework. Everyone knows that ICO investment scheme is currently unregulated hence; the investors are at a high risk because of this highly-speculative and risky scheme.
Owing to overcome this problem and save investors, the Gibraltar Commission has announced to put in place some new regulations that aim at bringing control and regulations on the entire cryptocurrency sector. The Gibraltar Commission is considered to be the watchdog for the British Overseas Territory in terms of financial matters. The commission made a statement that from coming year, a new framework is going to regulate companies that are using blockchains to store and transmit value belongings to others. So a regulatory framework can be soon expected that covers every aspect of cryptocurrency exchange sector. This is indeed satisfying news for all the investors who are a part of this market.
Since ICO schemes are unregulated and don’t fall under any regulatory framework as of now, many authorities across the globe have issued statements in public interest, citing the risks associated with the ICO schemes. China went a step ahead in this concern and banned this entire funding method. As a result, many native cryptocurrency exchanges had to shut down their businesses.
However, it can be said that interest in DLT by relevant authorities seems to grow unswayed. According to sources, Gibraltar Commission is planning to become the first ever exchange to implement and regulate a blockchain for all the trading and settlement matters in respect of the cryptocurrencies. This will surely provide protection coverage to all the existing and prospective investors of ICO scheme and will reduce fraudulent activities from the ICO scheme implementers end.