Crypto Valley Association, the Swiss-based not-for-profit association supporting the development of blockchain and cryptographic related technologies and businesses, today announced the launch of a code of conduct for ICOs. It is intended that this framework will guide ICOs on proper conduct, taking into account all legal, moral, and security obligations. The ICO Code of Conduct is expected to bring clarity and confidence to the still new, rapidly-growing asset class.
“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 Bussman said.
The code calls on all organizations running an ICO to be fully transparent about all details pertaining to the process. These details should be disclosed in a manner that can be easily understood, even by those that are not technologically sophisticated. This includes being clear about how funds raised are intended to be used, how the token will function, and providing a clear risk assessment for the underlying technology.
“The growth in popularity of decentralized applications and ecosystems, often launched as so-called ICOs, has caught the attention of regulators worldwide who want to be technology friendly, but also wish to understand the risks associated with the issuing, selling and transferring of tokens by clarifying their function, as well as their legal and tax status,” Luka Müller said (Mr. Müller is chair of the association’s Policy & Regulatory Working Group). “In addition, because of the rise in popularity of ICOs, new categories of contributors participate who 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.”
Headquartered in the Swiss canton of Zug, Crypto Valley Association is the independent, government-supported association established to take full advantage of Switzerland’s strengths to build the world’s leading blockchain and cryptographic ecosystem, working with government to foster the development of pioneering digital technologies in Switzerland and internationally.
“The Crypto Valley Association fully supports innovation in the blockchain space,” Mr. Bussman said. “We believe that token sales represent an exciting, sound and innovative approach to raising investment capital. Therefore, we believe Switzerland should support this trend by developing clear, comprehensible, yet flexible regulation that clarifies the legal status of ICOs and the tokens generated.”
From an initial tally of 16 at launch, the Crypto Valley Association now counts more than 550 corporate and individual members. The Code of Conduct document can be downloaded here:
Comments to the Code of Conduct will be gladly accepted through 31 January 2018 at the following addresses:
● Members who are logged into the CVA website can leave their comments directly on the Code of Conduct page.
● Non-members can send their comments to [email protected]