All over the world, there is now more money in public digital coins and digital tokens than ever before. However, one thing has always been problematic – there is no regulatory oversight for the public crypto market. Many politicians, regulators and consumer protection organisations are looking into implementing some regulation for digital coins, but so far, the rules are very limited. A legal expert provides insight on a law that is designed to govern ICOs that have raised over $1m, and whether there will ever be any regulation of crypto-currencies or crypto-currencies exchange businesses.
Is it illegal to invest in a digital coin or digital token?
If you are interested in investing in a crypto currency or digital token, it is a good idea to have some advice on what is actually happening before you start investing.
There are new online resources for investors, which can give you more background on what cryptocurrencies and crypto-currencies are and how to approach the digital market. So here are some of the most popular ones:
Cryptocurrency Market Overview
Cryptocurrencies have been on a rise since the fall of 2015. Most cryptocurrency prices are very volatile, which makes it difficult to invest in the right cryptocurrency at the right time. It is best to let a professional investment or wealth management advisory firm deal with your investments.
Invest in Crypto-Currencies and other ICOs before others
Most of the ICOs and cryptocurrency deals are done anonymously. Nobody really knows what is happening. There is no regulation to know what are your investments worth until you are done with your ICO. So you might take a leap of faith, thinking that you invested smartly when you did not. This is especially difficult if you are doing an ICO online or on your mobile phone. Many are talking about a change in regulation but this has yet to happen. Therefore, make sure you get all the information on what you should be investing in.
Meanwhile, it is advisable to start now, as the cryptocurrency market is still fast developing, and new ICOs/s are popping up every week. Invest in something if you think you are not the right person to be part of it. If that does not work, there is always the option of a self-invested fund (SIF) scheme. You can invest in a SIF managed fund so that you can get a return on investment. The usual rules and regulations apply for an SIF fund.
More Money in Cryptocurrency than Ever Before
Cryptocurrencies has made headlines in a big way in the past few years. This has lead to many publications and independent researchers taking a close look at these crypto tokens and questioning their value and future. Last week, the overall market value of all crypto-currencies surpassed $400 billion, according to Coinmarketcap.com. There are approximately 1,100 virtual currencies listed on exchanges all around the world.
However, it is easy to get tricked by boosters of these coins who try to impress you, make you believe that you are investing wisely, but they are just taking advantage of your gullibility. Most scam websites now include a disclaimer warning you that you may not get anything back.
Regulation is needed – Is this going to happen?
We are still a long way from having an official government regulation for these crypto-currencies. However, there are exceptions like the country of the Philippines, which is considering regulating ICOs. The country is considering enforcing a fine for those involved in unauthorised ICOs. It would be illegal for any ICO to profit from money raised by the ICO. This means that the ICO fund holder has to come out and redeem the ICO tokens after a certain time or he/she will incur a fine. This is what is known as a secondary market regulated exchange.
If you are contemplating investing in an ICO that has reached $1m and you will not get your returns, then you should invest in a SIF fund. A SIF fund can invest in coins that are lawfully being issued by the company. Therefore, the only regulation that you need to comply with is for the company to adhere to rules and regulations for the ICO. As such, at least you will not get stuck with a token that is sitting on the ground, lost in a virtual market.