This week, a host of news on the crypto regulatory front has
come out, some making investing more onerous, some making it
better. A recent report from the Organisation for Economic
Co-operation and Development (OECD) traces the process of initial
coin offering (ICO) fundraising and the potential risks for
offerors and buyers. The report highlights many ICO benefits,
including cost savings, direct access to investors and the active
participation of buyers. The identified risks include potential
conflicts of interest; lack of standardized, vetted disclosure; and
high volatility and counterparty risks. The OECD calls for a
"delicate balance" in developing a regulatory scheme that
will "not deprive the ICO mechanism of its speed and cost
benefits." At the same time, "ICOs are, by nature, not
the right solution for every project," and the possibility for
ICOs to be "a mainstream financing option" is
limited.
