In this article, we would like to tell you about the legal status of ICO in different countries.
There are 3 statuses:
ICO and tokens are being regulated by the state.
There is a small regulation or no regulation at all.
ICO is banned.
Let's start with countries that are members of British Commonwealth.
England
The status of ICO is defined individually. As for now there is no single definition or regulation for ICOs.
Canada
In Canada ICO's might be classified as securities. Following in the footsteps of the United States and Singapore, Canada has become the latest place to yank away the welcome mat for so-called "ICOs."
Australia
In Australia ICOs might be defined as financial instruments or assets. In Australia, the legal status of an ICO is dependent of the circumstances of the ICO, such as how the ICO is structured and operated, and the rights attached to the coin (or token) offered through the ICO. In some cases, the ICO will only be subject to the general law and the Australian consumer laws regarding the offer of services or products. In other cases, the ICO may be subject to the Corporations Act.
Singapore
Ravi Menon, the managing director of the Monetary Authority of Singapore, made it clear that the country's central bank will not regulate the cryptocurrency market.
Moving on to European Countries.
Lithuania
The rights of toke holders depend on different conditions. The CB Lithuania has released the four-page position note on cryptocurrencies. There are two sections: one that largely reiterates a 2014 statement effectively banning banks and financial institutions from handling or otherwise working with cryptocurrencies, and another that hones in on the issue of ICOs.
Estonia
Might be classified as securities. The Estonian Financial Supervisory Authority (EFSA) is of opinion that tokens in terms of the offerings, depending on their structure, might be considered as securities according to the definition set forth in the current Securities Market Act (SMA) as well as in the Law of Obligations Act (LOA). In assessing whether or not securities laws apply, the EFSA states that substance should be considered over form.
Switzerland
Tokens might be classified as securities. The government issued a warning on the risks associated with cryptocurrencies.
Liechtenstein
ICOs and tokens are securities. The Financial Market Authority of Liechtenstein (FMA) has been supportive in providing an open and constructive framework for those with innovative business models.