According to sources, Gibralatar is set to launch the world’s very first regulations for initial coin offerings with specific rules for the cryptocurrency sector. This is due to the rapid growth of cryptocurrency raising concern amongst many central bankers.
Bankers are concered about financial stability and being able to protect consumers. However, regulators have decided on a patchwork approach to ICOs (Initial Coin Offering) which range from bans in China to applying current securities rules in the United States.
And so, this has generated legal uncertainty for transactions which sometimes can swerve many countries.
An ICO relates to a company raising funds by providing investors with tokens in return for their cash or cryptocurrency such as bitcoin, rather than gaining shares in the business from a traditional offering.
In 2017, over USD $3.7 billion was raised through ICOs which was a considerable increase from less than EUR €82 million in 2016.