SEC Releases A Guide To ICO's On Their Website

The U.S. Securities and Exchange Commission (SEC), after educational fake ICO, has published on the official site the instruction for the investors interested in ICO projects.

Within the last two years, thanks to a hayp around the blockchain technologies, various ICO, in total, could attract billions of US dollars. However, in process of growth of popularity, incompetence of organizers, roguish tricks of promoters and as a result, the deceived investors became characteristic of ICO campaigns.

Financial regulators have found out worldwide that not so just to enter a way of attraction of financial resources by means of ICO into the legal framework, and the authorities of many countries still couldn't give exact definition to primary placement of coins.

In case tokens are something reminding to the stock of the company, they are regarded as securities and get under the relevant legislation. In the USA tokens - securities are under jurisdiction of Securities and Exchange Commission (SEC).

In spite of the fact that tokens - securities are regulated according to the law of the USA on securities of 1933-1934, society has to be informed on the risks connected with ICO and also have the guide to making decisions on investment of capital in ICO projects, SEC considers. For this reason the commission has created the guide for investors and has published it on the official site of department.

ICO is not about reading/writing of a vaytpeyper and not about arithmetics. ICO is about risks, benefit and responsibility.

SEC explains:

• ICO distributing securities are obliged to be registered in SEC.
• Not all tokens are securities, however some of them skillfully mask under those.
• Participation in ICO — high-risk investment.

Addressing investors, SEC reports:

• Cryptocurrency, by the nature, have no borders therefore protection which the local regulator can provide you, often, is very limited.
• Investors have to be extremely careful and carry out independent careful studying of the project considered as an investment opportunity. The analysis of a business model of ICO and also standing behind creation of technology of team for assessment of standard legal status and the feasibility study on the project is necessary.

To issuers of ICO the U.S. Securities and Exchange Commission points that it is necessary to realize responsibility for the choice of this option of financing and to ensure due safety. This statement equally concerns also the companies providing platforms for carrying out ICO and the subsequent conclusion of tokens to the exchange.

A few weeks ago SEC in the educational purposes has submitted to the public the page of the website of typical roguish ICO to show to investors in practice how not to get on tricks of swindlers.