It has been announced that the Israeli security panel has constituted a committee to study the operations and execution of Initial Coin Offerings (ICOs) by blockchain companies. There is a possibility that this committee might follow the stead of the Security and Exchange Commission (SEC) in the US and come out with some guidelines on how ICO projects within the jurisdiction could be conducted.
The issue of regulation does not sit well with most players in the crypto-industry. A lot of people are of the view that regulations by mainstream authorities could be detrimental to the idea of decentralization that blockchain espouses.
Regulators in Canada also issued a notice last week outlining how some blockchain tokens could be classified as securities. However in their case, the Canadian Securities Administrators (CSA) were quick to open their doors to ICO project teams asking them to visit their offices to reach some form of collaboration on how to successfully carry-out their crowdsale campaigns within the remit of their intended regulations.
A few other regulators like those in Singapore have also shown signaled that steps could be taken to regulate ICO projects. How these will play out and the effects are yet to be seen. An upside in this era of “supposed regulation” is that the afore-mentioned bodies will likely not classify all tokens as securities – speculations are have it that tokens with independent utility will not be considered as security offerings.
This particular move by the regulators in Israel is worthy of note considering that the country has witnessed several start-ups raise significant funds through the ICO process – notable amongst them is Bancor that raised a little over $150 Million in June.
According to the ICOWatchlist ICO tracker, nearly $2 Billion has been raised by blockchain companies through Initial Coin Offerings (ICO) so far for the year 2017 alone.