Uncle Sam Regulates ICO

The amount of money raised with ICO recently has been short of amazing.  This however opened doors for possible fraudulent ICO’s  offered by shady “startups” who never intended to carry out the promise of the startup.   Startup which is described by Eric Riles as “A human organization dedicated to create new products and services under conditions of extreme uncertainty.”      If you already know startups are risky, you have to do your due diligence to validate the investment.

On July 25 the US Government issued an alert to investors warning about the danger of such an investment vehicle with the intention of presumably “protecting” the public.

“Investing in an ICO may limit your recovery in the event of fraud or theft.  While you may have rights under the federal securities laws, your ability to recover may be significantly limited.”

On one hand this acknowledges the acceptance & importance of cryptocurrency but on the other it is a possible omen that government regulation looms on the horizon.   Goverments of the world do not understand the implication and impact of cryptocurrency.   The adoption of the currency will continue however.  Cryptocurrency is supposed to be decentralized and not controlled by any single entity.   I foresee battles of will ahead.