Globally, ICO (Initial Coin Offerings) is arguably the most talked about subject among investors and regulators. Several new ICOs hit the market on a daily basis. Very few succeed and some of them disappear with investors’ money as it is quite easy to set up a fancy looking website, set up a block chain and claim the token to be the next big thing in the crypto currency market.
Even regulators such as the SEC (US Securities and Exchange Commission) is not sure how to deal with the ICOs. Regulating ICOs and digital assets is proving to be a difficult task. In this regard, open source block chain platform Waves has announced that it is setting up an independent regulatory body that will provide legal, tax & accounting, reporting, KYC (know-your-client), and business due diligence standards for the crypto market.
Waves announced that the proposed regulatory body will be set up in Switzerland as the country is renowned for its transparency and regulation. The regulatory body will stand ready to serve all crypto exchanges, block chain and ICO platforms, marketing companies, reputed investors, and service firms. Organizations such as Ethereum Foundation, Deloitte, and ICO Governance Foundation have pledged their support for the proposed regulatory body. These organizations will also coordinate with each other on cross-platform ICO disclosure protocols.
Waves is planning to complete the registration of the new regulatory body in the next couple of months. The executive body for the organization and industry standards will also be created in the meanwhile.
The CEO and founder of Waves Platform Alexander Ivanov stated that his company believes that the right kind of regulation is a good thing for the crypto currency market. The association plans to create ICO reporting guidelines, KYC/AML guidelines for investors, legal assessment, and business due diligence.
Vladislav Martynov, Ethereum’s Advisory Board Member is of the opinion that such a regulatory body is quite critical to turn the block chain industry professional. He further stated it is the responsibility of the leaders of this disruptive technology to ensure the industry functions in a transparent manner, while providing necessary security to the investors.