Newsflash | CSSF Press Release 17/38 on risks of ICOs for investors
CSSF Press Release 17/38 on risks of ICOs for investors |
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| In a few words ESMA adopts a balanced approach towards ICOs taking into account both risks for investors and compliance with applicable requirements for issuers when contemplating an ICO. |
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| An ICO is an unregulated and innovative way of public fund raising, by selling coins or tokens. By launching an ICO, a company (the Issuer) (startup and/or fintech company) or an individual, issue coins or tokens for sale in exchange of virtual currencies, such as Bitcoin. Sometimes, ICOs may as well involve traditional currencies. The aim of launching an ICO is to circumvent traditional rigorous and regulated capital-raising process, by allowing Issuers to raise money in a fast manner and start rapidly their activities. That being said, the non-regulated nature of ICOs represents… |
| Contact | ||
| Pierre-Alexandre Degehet, Partner | Marie Casanova, Senior Associate | |