The Bahamas Designs New Regulations for Battling Phony ICOs
The Central Bank of The Bahamas has issued a document detailing amendments to the regulatory framework that are geared towards helping the integration of digital assets within its financial services offerings. Initial coin offerings (ICOs) are a popular capital raising tactic for start-ups globally.
Many new business have raised funds for their operations quickly by allowing investors to offer capital, usually in the form of Ethereum-based tokens, which are exchanged for a new coin that is used to access the firm’s goods and services. Detecting fraudulent ICOs has proven to be quite difficult. .
The Central Bank document is based on recent suggestions made by the International Monetary Fund (IMF) and is aimed at reducing the fragmentation that exists within the current regulation and is expected to make the identification of phony ICOs easier for regulators.