However, some transactions may fall under the jurisdiction of several states at once.
Features of the ICO legal status in the world
Different laws on securities and anti-money laundering operate in different countries. In the case of ICO, the country where the ICO legal entity (if any) is registered, what country its owners are from, and also what countries the investors who invested in the project are from, matter. That is, the ICO can be regulated by the legislation of all these countries.
In July 2017, the US Securities and Exchange Commission (SEC) announced that federal securities laws could be applied to the ICO. At the same time, the regulator indicated that not all ICO tokens can be recognized as securities, this decision will be made in each specific case. This primarily complicates the work in this jurisdiction for non-residents of the United States.
In early September, the People's Bank of China officially banned the ICO, as it "destroys economic and financial stability." Tokens cannot be used as a currency on the market, and Chinese banks cannot offer services related to ICO. Prior to this ban, ICO raised about $ 400 million from 100,000 Chinese investors.
In Singapore, tokens are specified in the instructions of tax authorities, which have the force of a law in court proceedings. Taking into account Singapore's orientation towards an innovative economy, there is a chance that tokens in this country will be classified as assets that are not subject to full regulation of securities. In addition, attractive conditions for non-residents who want to start business are created.
The Autorité des marchés (AMF) – is the organization responsible for financial regulation in the Canadian province of Quebec, announced in September 2017 that the blockchain platform for investment in socially responsible enterprises of Impak Coin is legal. The regulator took Impak Coin into its standard pool, creating a precedent in Canada. Taking into account the general loyalty of the Canadian government to the blockchain, we can expect that this is only the first fruit.
In Switzerland, crypto-exchange companies do not require any registration or license. Crypto-currencies in Swiss jurisdiction are assets, not securities. The Swiss government is working on the rules of the Crypto-currency. More and more firms and companies are moving under the Swiss jurisdiction.
England is a country with high activity in the crypto-currency market, but there is no legal clarity there. In its present form, crypto-currencies and tokens are considered a "private currency", and emitents work in accordance with their own interpretation of the law. However, in the near future, the situation for ICO in the UK may change, and it is still unclear how.
Isle Of Man
The Isle of Man, which is the Crown Dependencies of the British Crown, but as a matter of fact acts under its jurisdiction, is ready to open its doors to crypto-currency businessmen. A regulatory framework has already been created which allows the legal entities registered on the Isle of Man to sell tokens. Legislation corresponds to the rules of anti-money laundering.
Officially, Russia has not determined its attitude to the crypto-currencies yet. On the one hand, the authorities call them a "financial pyramid", on the other hand – the recognition of tokens as legal financial instruments or derivatives is possible. In addition, the Bank of Russia itself is ready to develop its own crypto-currency projects. But the state of uncertainty still exists.