Swiss-based non-profit Crypto Valley Association has announced they support the careful regulation of initial coin offerings and the development of best practices for those consider the activity.
The Crypto Valley Association represents more than 220 individuals and groups. They are supporting the development of an ICO Code of Conduct that is being developed by legal, tax, accounting, cybersecurity and communications professionals.
“With the explosion of innovation surrounding blockchain and cryptocurrency technologies, it is unsurprising that organizations are leveraging similarly innovative financial instruments to raise capital,” Crypto Valley Association president Oliver Busman said. “Thanks to their simplicity and popularity, the number of token launches has increased rapidly in recent months, with over $1.6 billion USD raised in 2017 alone.
“However, this growth in popularity has caught the attention of regulators worldwide, who wish to protect participants by clarifying the exact function and legal and tax status of the tokens. In addition, investors are often unaware of the true nature of their investment, and the documentation published to accompany token launches often minimizes or ignores the associated risk.”
Switzerland is home to several of the most successful blockchain initiatives. Mr. Bussmann said the Crypto Valley Association fully supports blockchain innovation, and they believe token sales represent “an exciting, sound and innovative approach to raising investment capital”.