THE FIELD OF INITIAL COINS OFFERING (ICO) LEGAL REGULATION

Back to Page Authors: Sergey Kasatkin

---

Keywords: initial coins offering, token, blockchain, subject of legal regulation, smart contract

---

Abstract: The article discusses factors that determine the subject of legal regulation of the procedure of primary placement of digital assets (ICO). First of all, legal effects included in the scope of the relationship must be sensitive to regulatory and legislative means. Besides, the subject of ICO legal regulation should promote effective law enforcement and ensure an optimal balance of interests of all participants in the ICO procedure. Based on the analysis of the legislation of foreign countries, the author concludes about the variety of approaches to the definition of the subject of ICO legal regulation. In some states, regulation is provided through the use of traditional institutions (including rules on securities turnover), in others – through the adoption of special legislation. In any case, the supranational and cross-border nature of ICO and digital crypto assets determines the essential features of the application of legal norms. As a result of the study, the author formulates the optimal subject of ICO legal regulation, which should include the procedure of voluntary state registration of ICO, providing verification of White paper by an authorized state body, as well as determining the legal status of crypto-exchanges.

---