The Crypto Valley Association (CVA), the Swiss-based not-for-profit association supporting the development of blockchain and cryptographic related technologies and businesses, today announced support for careful regulation and best practices for Initial Coin Offerings (ICO). The announcement describes the development of an official, CVA-supported ICO Code of Conduct, a framework designed to guide ICOs on proper conduct, taking into account all legal, moral, and security obligations. The ICO Code of Conduct is expected to bring clarity and confidence towards a new, rapidly-growing asset class.
Oliver Bussmann, President of Crypto Valley Association said:
“With the explosion of innovation surrounding blockchain and cryptocurrency technologies, it is unsurprising that organizations are leveraging similarly innovative financial instruments to raise capital. Thanks to their simplicity and popularity, the number of token launches has increased rapidly in recent months, with over $1.6 billion USD raised in 2017 alone.”
“However, this growth in popularity has caught the attention of regulators worldwide, who wish to protect participants by clarifying the exact function and legal and tax status of the tokens. In addition, investors are often unaware of the true nature of their investment, and the documentation published to accompany token launches often minimizes or ignores the associated risk,” added Bussmann.
Headquartered in the Swiss canton of Zug, Crypto Valley Association is the independent, government-supported association established to take full advantage of Switzerland’s strengths to build the world’s leading blockchain and cryptographic ecosystem, working with government to foster the development of pioneering digital technologies in Switzerland and internationally. To date, four of the five largest token sales recorded have been completed by companies based here in Switzerland, attracting a combined investment in bitcoin and ether of over $600 million USD.
“The Crypto Valley Association fully supports innovation in the blockchain space. We believe that token sales represent an exciting, sound and innovative approach to raising investment capital. Therefore, we believe Switzerland should support this trend by developing clear, comprehensible, yet flexible regulation that clarifies the legal status of ICOs and the tokens generated,” added Bussmann.
In the statement published today, CVA announced the development of an ICO Code of Conduct, aimed at providing companies with a framework outlining their legal and moral obligations, providing ICO participants with a thorough understanding of the risks involved.
“The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it’s our responsibility to support the industry. The widespread adoption of this framework, combined with careful supportive regulation would bring stability to an exciting but uncertain trend in blockchain,” concluded Bussmann.
The ICO Code of Conduct is being drafted by a multidisciplinary team with expertise in legal, tax, accounting, cybersecurity, and communications, among other disciplines. From an initial tally of 12 at launch, the Crypto Valley Association now counts over 220 corporate and individual members. Prominent new joiners include Swisscom Blockchain (a newly founded company of Swisscom, Switzerland’s largest telco), SUVA (the Swiss national accident insurance fund), as well as Alpere, Blockhaus, Deon Digital, and SingularDTV.