Ethereum, Waves, IGF & Deloitte Create Industry Initiative To Regulate ICOs
Waves, an open source blockchain platform geared towards streamlining the ICO creation and launch process, announced today that it is launching a regulatory body with key market players in an attempt to promote the responsible growth of initial coin offerings in the cryptocurrency market.
The new alliance, announced on Monday the 12th of December, is an industry-led initiative that aims to establish legal, regulatory, tax, Know Your Customer, Anti-Money Laundering, and business-focused due diligence standards around initial coin offerings, which have become a highly popular but controversial element of the blockchain ecosystem.
The problematic nature of initial coin offerings is made more complex by the lack of regulatory standards governing them, and the hesitance or confusion of regulatory bodies when attempting to construct regulatory frameworks.
The new alliance, backed by the ICO Governance Foundation, Ethereum, and Deloitte, has been touted as a platform that will bring the blockchain industry to a higher level of professionalism. The alliance intends to create a comprehensive regulatory platform that will provide a range of different functions in several areas of ICO activity.
In addition to the four major market players backing the project, many smaller blockchain platforms have expressed their support for the initiative, which aims to offer the following services to the industry:
- The creation of comprehensive reporting guidelines for initial coin offering projects
- Know Your Customer and Anti-Money Laundering guidelines for initial coin offering investors
- Business due diligence practices
- Legal assessment services
“The Waves Platform is taking a leadership role in working with the IGF on ICO disclosure standards. By exhibiting leadership here they are expanding the scope of what it means to be a platform for token creation.”
Vladislav Martynov, a member of the Ethereum advisory board, has also added his statements on the establishment of the alliance:
“Joint and voluntary initiatives such as this self-regulatory body for token sales are a critical element in the professionalisation of the blockchain industry. As custodians of some of the most remarkable and disruptive technology ever created, we must be seen to be fostering its responsible use as well as building functionality and maintaining the security of the ecosystem.”
The initial coin offering market has suffered from a wave of fraudulent launches recently. More than $1.3 billion USD has been raised through initial coin offerings in the latter half of 2017 alone, but according to Russia-based cybersecurity firm Kaspersky Lab, more than $300 million in funds have been stolen from these ICOs from fraudsters and hackers.