The work of Taiwan’s SRO is underway but thorny problems remain.
The News Lens
Date: 2018/06/13
By: Jeremy Firster
Unfortunately, in an unregulated space, scams and misunderstandings are rife, especially in as potentially lucrative an arena as cryptocurrency or token initial coin offerings (ICOs).
Some studies, albeit by groups with a vested interest in drumming up business in ICO consultancy, have claimed that as many as 80 percent of ICOs are scams. Others, in this case by The Wall Street Journal, estimate it is a more conservative 20 percent. Either way, the depth of peril is clear.
Such assertions, along with reports of multi-million-dollar scams, such as the Modern Tech scandal that swept up tens of thousands of would-be investors in Vietnam, the Superior Coin debacle in Taipei, or the frequent actions by the U.S. Securities and Exchange Commission to freeze assets of illegitimate ICO companies, damages confidence in the industry and inhibits its ability to mature.
From a regulatory perspective, such shady dealings raise concerns on how to protect the interests of “retail investors” (those who are not professional investors), as well as institutions concerned about falling foul of anti-money laundering controls.
[FULL STORY]