The cryptocurrency regulation seems to be the in thing. Governments are trying all they can to develop laws that will definitely achieve this. The government of Gibraltar, together with the Gibraltar Financial Services Commission (GFSC) have announced plans of developing draft laws that will regulate the Initial Coin offering (ICOs) in the British overseas territory.
The lawmakers have claimed that these laws, whose aim will be to regulate the promotion, sale, and distribution of digital tokens on the Gibraltar territory, will be the first laws ever developed to regulate ICOs.
These laws will introduce the concept of ‘authorized sponsors’ whose main responsibility will ensure there is compliance with disclosure and financial crime rules. The laws will also go to an extent of establishing disclosure rules that will ensure that ICO projects provide adequate, accurate and well-balanced information to anybody who wishes to purchase the tokens.
Reuters have also said that over $3.7 billion was raised in ICO fundraisers globally in 2017. This is a huge amount compared to $100 million secured in 2016. The Gibraltarian regulators have been jolted into action by this rapid expansion of the ICO market space.
There were reports in 2017 that the increase in the number of ICOs, the GFSC had issued an official statement that warned investors of the highly risky and speculative nature of the ICO fundraising campaigns. After all, the cryptocurrency market has been viewed by many as such and therefore the regulators, according to the report, were out to somehow protect the vulnerable investors.