Crypto Valley Association Introduces Code of Conduct for Initial Coin Offerings

Fintechist Crypto Valley ICO Regulation

Initial coin offerings remain an intriguing but controversial investment opportunity. Although the concept may make a lot of sense to investors, financial authorities maintain a different opinion. Even crypto-friendly regions, such as Switzerland’s Crypto Valley, have to introduce some basic rules. More specifically, their code of conduct for ICOs has been unveiled. It makes a lot of sense, given the controversial nature of most of these projects.

A lot of people have shown an interesting in initial coin offerings. The potential investment returns of such programs are rather significant. Some projects can easily return 1,000% or more within a few months. This will only happen if the team behind such projects is legitimate. To ensure that is the case, the Crypto Valley Association has come up with some basic rules. Although this is an interesting stance, the association doesn’t prohibit the use of ICOs whatsoever.

A Positive Approach by the Crypto Valley Association

Instead, this new framework will guide ICOs regarding proper conduct. It takes various factors into account, including legal, moral, and security obligations. Quite a few metal coin offerings tend to overlook at least one of those aspects these days. Crypto Valley wants to welcome project going down this route, but only if they meet the necessary requirements. It is of the utmost importance all projects are fully compliant, to avoid any legal issues afterward.

Crypto Valley Association’s Luka Muller comments:

“The growth in popularity of decentralised applications and ecosystems, often launched as so-called ICOs, has caught the attention of regulators worldwide who want to be technology friendly, but also wish to understand the risks associated with the issuing, selling and transferring of tokens by clarifying their function, as well as their legal and tax status. In addition, because of the rise in popularity of ICOs, new categories of contributors participate who 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.”

It is evident Crypto Valley wants to take a positive approach toward regulating initial coin offerings. Rather than opposing such a business model, the association will lend a helping hand. This is the only valid course of action for such a nascent industry. Switzerland is quickly becoming a prominent region for everything associated with blockchain and cryptocurrency. It only makes sense they pay close attention to ICOs and the potential risks associated with this model.

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