The Financial Commission has established a panel of purported fintech experts to issue certification and assess the merits of prospective initial coin offerings (ICOs). The independant body has been named the ICO Certification Committee, or ICC.
Also Read: Chinese Regulators Consider Crackdown on ICOs
The Financial Commission Has Established an Independent Body Tasked With Certifying Initial Coin Offerings
The Financial Commission, an independent body that certifies trading technologies and conducts procedures for external dispute resolution for the forex industry, has established a committee tasked with certifying new ICOs. The ICO Certification Committee will comprise an independent self-regulatory organization backed by the Finance Commission’s Dispute Resolution Committee. The ICC will assess initial coin offering according to a yet to be disclosed set of criteria.
Peter Tatarnikov, chairman and founding member of the ICO Certification Committee, has articulated the circumstances leading up to the establishment of the ICC, in addition to its goals. ”The ICO certification service was a natural addition to our existing technology certification service for Fintech companies. cryptofinancing via ICOs is skyrocketing in popularity yet the process is still ridden with challenges for issuers and investors – so the need to establish best practices for Fintech companies seeking capital raises via cryptofinancing was needed and Financial Commission is pleased to now offer certification to eligible firms seeking to do an ICO.”
The Establishment of the ICO Certification Committee Comes at a Time of Intensifying Scrutiny From Governments
The ICC is expected to act as an extension of Financial Commission, which comprises an independent dispute resolution and self-regulatory body for the forex industry. It is expected that the ICC will largely operate in the interests of forex brokers, and seek to develop criteria by which to assess the risks associated with facilitating the trade tokens or derivatives associated with initial coin offerings. The Financial Commission’s external dispute resolution services are not registered or regulated within any jurisdiction.
The establishment of the ICO Certification Committee comes at a time of intensifying scrutiny from governments with regards to initial coin offerings. The United States Securities and Exchanges Commission (SEC) recently issued a warning aimed at ICOs that may be conducting the unregistered distribution of securities, with Canadian and Singaporean financial regulators quickly echoing the SEC’s position. It has also been revealed that Chinese regulators have been discussing measures designed to crackdown on the ICO industry, including the consideration of a complete suspension of all initial coin offerings being conducted within China.
Do you think that we are likely to see more self-regulatory bodies pertaining to cryptocurrency and ICOs? Share your thoughts in the comments section below!
Images courtesy of Shutterstock and Financial Commission
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