According to Bitcoinist powerful new legislation is upon us that can and will influence ICOs, cryptocurrencies, and investor function. Legislation consists of GDPR (Global Data Protection Regulation) scheduled for March which entails new rules/fines regarding personal information acquisition and storage in terms of liability and privacy laws which are designed to provide additional layers of security for investors. For example, a minimum $20 Million Euro fine for improper storing/acquiring personal data of any European Union citizen.
Other legislation discussed was House Bill HR1585, proposed to advance the efforts to democratize financial markets and allow new classifications for example Technical Investor status for investors to invest at their discretion in any project where their expertise was deemed relevant.
Also mentioned was House Bill S1241 which is mostly bad news due to its consequential enforcement of fines for example 5 years in federal prison and fines that can double if the offending entity’s project transacts over $1M USD which is every successful ICO up until this point, this would affect token issuers and investors alike.
Lastly the SEC is said to be working on implementing Conveyor Belt Enforcement on many ICO’s which is an enforcement method utilizing a Cyber Unit. This method is designed for extreme cases of broad disregard for laws and acts to target violations involving distributed ledger technology and initial coin offerings involving both ICO issuers and their advisors/consultants when it comes to enforcement like lawsuits, fines, and prison time.
We at The Society recommend reading the full article available below:
http://bitcoinist.com/a-look-ahead-at-crypto-compliance-and-regulation-in-2018/
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