Proposition for Self Regulation rules for the ICO ecosystem
We strongly believe that we need a European ICO/ITO manifesto, to create best practices in this exciting new innovation enabling projects to federate resources in a regulatory-free environment, ie in the existing legal frameworks, so entrepreneurs won't be intimated or stifled in developing innovation in Europe.
Ecosystem actors assisting projects and companies in the issuance of new tokens should take the lead in writing and educating ICO/ITO market, with a ‘Best Practices Charter.’ As of today, the ICO Charter is representing 19 countries around the globe.
This manifesto or Charter seeks to establish and build consensus the best practices for the launch of ICO/ITO’s : Questions addressed are do we need a KYC ? What kind of KYC? What type of token? Token structuration and uses? Defining the purpose of the ICO? What kind of due diligence must be made before the ICO/ITO? What minimum structure of whitepaper and prospectus? What information is provided in these ICO supporting documents?
CHARTER
1-INFORMATION PROVIDED BY THE ICO/ITO PROJECT
Smart Contract (s) or Access to code or any technical data detailing the Token delivery process, and subsequent impacts
Passport, ID Card or any form of State issued ID document for physical person.
Articles of incorporation of a legal entity with authorized signatory officers
Tax-Residency of investor
Disclosure of different types of ‘Wallets’, real time traceability of collected cryptocurrency (and/or Fiat currencies) for the ICO/ITO
Disclosure of fees in tokens paid to advisors
Pre-sales Mechanics/Rules and disclosure of rules to offer discounts
Traceability of all crypto transactions
Disclosure of all fees used for and during the process of the Pre-ICO/ITO and actual ICO/ITO
Process of cryptocurrency proceeds ‘restitution in case the ICO/ITO target amount is not reached
Creation of an ICO/ITO Escrow wallet for cryptocurrencies
Rules and conditions for release of proceeds to the ICO/ITO project
Ongoing presence of an IT supervisor during the ICO/ITO to monitor the ICO/ITO web site, hacking and the correct Bugs
ISO 27001 certification recommended
11-Commitment on the laws of listed States
ICOs complying with this Charter shall not:
If an ICO is carried out by an issuer incorporated under the laws of a State listed as “provisionnaly partially cooperative” or “partially cooperative” in the above-mentioned OECD list (a “Partially Cooperative State”), or governed by the laws of a Partially Cooperative State, the issuer shall expressly undertake, in the white paper, to answer in full transparency and cooperation to the tax information request submitted by foreign tax administrative, judicial or regulatory authorities
Signatories of the ICO Charter
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