The world’s most friendly ICO host countries? – Covesting
2017 has been the year of the ICOs. Initial Coin Offerings have fueled startup fintech companies focused on blockchain technology with millions of dollars to grow their businesses, potentially reward investors, and most definitely draw the attention of securities regulators around the globe. If 2017 was the year that saw the ICO boom into a hybrid of crowdfunding meets IPO, 2018 will be the year that sees ICOs become regulated. Many countries have issued statements or started to pursue a blueprint for how they would legally handle ICOs in the last few months, but very few have really laid the framework to give the industry a clear idea on what to expect.
One thing that has made cryptocurrency markets so encapsulating is the ever-changing environment it fuels. Not only are the markets themselves volatile, but it’s a 24-hour market that is affected by news cycles in every country, around the world. While traditional financial markets can be volatile and major events can drastically effect its direction, crypto seems to undergo these swings at least once per week. This is one of the many reasons, for startups in the industry to ensure that they are taking risk and legal aspects of their companies into consideration.
On November 6th, Covesting CEO Dmitrij Pruglo and COO Tim Voronin flew to Gibraltar to discuss this very matter. Gibraltar, a territory of the UK that has its over governing body, has recently become one of the first countries to announce a true framework for regulating ICOs and blockchain based startups. While regulators in the U.S. and Canada are installing strict rules for ICOs, or even banning them outright like China, smaller countries see an opportunity. According to Josh Klayman, an attorney at New York office of Morrison Foerester, Gibraltar is positioning itself to attract startups in the blockchain industry by creating a very welcoming environment. For the territory, the advantages of being an ICO hotspot could involve listing fees and drive more business for local banks and law firms.
According to Klayman, Gibraltar isn’t the only place looking to brand themselves as an ICO launch pad. The Isle of Man and the Cayman Islands are also in the game. Switzerland has also remained a popular base for ICOs, especially for companies already located in Europe. Countries such as the USA, Singapore, China and South Korea have all announced that they will start regulating ICOs in a more scrupulous manner, likely leading to much more red tape, and holding back the expansion and growth of startups as they become more embroiled in legal fees and documentation.
Covesting aims to finalize paper work in the coming weeks. The move is extremely promising for Covesting, where we aim to the create the world’s biggest and most complete p2p asset management platform in the cryptocurrency industry. The platform would allow regular investors the chance to copy the trades of professional traders, and share the profits. Incorporating in such a country like Gibraltar would allow Covesting to operate as they wish, with fair regulations to keep investors protected, without hampering the growth and innovation that all blockchain startups are trying to provide to the world.
By Covesting / Medium.com
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