Organizations have raised over $1.8 billion through ICOs since January 2017. As organizations continue to raise tens, sometimes hundreds, of millions of dollars in each token sale, it grows increasingly important for industry leaders, lawyers, policymakers, and academics to understand both the ICO regulatory landscape and the economic and technological attributes of the cryptocurrency and ICO space. Even companies that are not directly involved in the blockchain space should be conscious of how ICOs and tokenization could be leveraged in multiple industries.
The Stellar Development Foundation (SDF) and the Luxembourg House of Financial Technology (LHoFT) have coauthored and published a 40-page white paper on initial coin offerings (ICO). The paper presents in-depth research and analysis in four areas: (1) the technical elements of ICOs, (2) the use-cases, benefits, and risks of ICOs, (3) recommended and forecasted regulatory actions, and (4) global regulatory developments. The paper combines both a regulator’s perspective (per LHoFT) and a technical and economic perspective (per SDF).
The purpose of this paper is to educate industry leaders, lawyers, policymakers, academics, and the general public on the characteristics, use-cases, and regulatory concerns of ICOs.
The Technical Elements of ICOs
The Benefits, and Risks of ICOs
Recommended and Forecasted Regulatory Actions
Global Regulatory Developments
The Stellar Development Foundation (SDF) is a non-profit organization that develops distributed ledger financial technology to enable individuals, banks, and payment systems to move money quickly, cheaply, and reliably. SDF views initial coin offerings as a promising technological mechanism that has the potential to expand global financial access and inclusion. SDF’s open-source technology is used to facilitate regulatory-compliant initial coin offerings.
The Luxembourg House of Financial Technology Foundation (LHoFT) is a public-private sector initiative that drives technological innovation for Luxembourg's Financial Services industry. Luxembourg is universally recognized as a leading financial center and one of the preeminent centers for digital financial services. The LHoFT promotes and incubates innovative financial technologies, including blockchain and distributed ledger applications.