The ICO boom spells a promising future for cryptocurrency and blockchain technology. It’s creating opportunities with speed and efficiency unrivaled by conventional financing and venture capital vehicles.
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Naturally, this phenomenon has also meant that regulators are turning their attention to cryptocurrency, understandably concerned about their legitimacy. Among the first businesses affected were cryptocurrency exchanges, with those based in China forced to shut down from August. Others based in Europe and North America have begun tightening controls on new coin listings, notably through Anti Money Laundering / Know Your Client (AML/KYC) measures aimed to bring them into compliance with their respective financial regulations.
Although the structure of ICOs as a whole is not governed by specific laws, either globally or in Switzerland, some parts of their procedure such as fund collection or repayment without an issuing house are considered to be covered by existing regulations. Thus, it is becoming increasingly clear that mere disclaimers carried by most ICOs stating that they are not securities is not enough to qualify them as compliant.
Months before its launch, UTRUST has been working diligently to achieving complete compliance to all relevant rules and regulations by the Swiss Law.
Recognizing the impending need for implementation of compliant ICOs, KYC and AML procedures will soon likely be standard for regulated cryptocurrency ICOs & exchanges. UTRUST is in the process of finalizing initial KYC/AML onboarding procedures – this will also aid acceptance and listing of its tokens on the open market.
UTRUST is also well prepared to abide by any future requirements that may come under the General Data Protection Regulation (GDPR) in early 2018.
These pre-emptive and safeguarding measures are consistent with UTRUST’s mission to operate as a legally compliant and future-proof platform to set a strong case study for best practices of future “compliant ICOs”.