Is crypto ICO legal? Are ICOs Legal? Yes, ICOs are legal. ICOs are a new form of securities offering and regulation is still being formed around them; however, they are legal as per the SEC, and the SEC has established a regulatory framework around ICOs that must be followed to ensure the legality of an ICO.
How do I launch an ICO legally?
- Determine What Your Technology Is.
- Understand the Securities Laws Affecting Your ICO.
- Choose a Jurisdiction for Your ICO.
- Create Your White Paper with Eye Toward Securities Laws.
- Maintain Compliance with Securities Law and Money Laundering Standards.
Do ICOs need to be registered? ICO tokens can take the form of non-securities and avoid SEC registration, or if deemed to act as an investment contract and therefore, a security they will need to register with the SEC.
How can you tell if an ICO is real? Look to the Token Sale
Any ICO will depend upon a token or currency system in order to facilitate the crowdfunding process. Legitimate companies and endeavors make the system itself and the progress of the token sale easy for potential investors to view. Look for the token sale figures as the ICO is ongoing.