Crypto sector joins forces to launch a compliant ICO platform

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A group of fintechs and investment companies involved in the cryptocurrency and initial coin offering markets have joined forces to develop an ICO issuance platform.

The new business, FutureICO, has been established by ICO advisory group Digital X. The other JV partners are Blockchain Global, which has invested in more than 50 blockchain enabled companies and projects, and Big Start, a specialist in providing financial services solutions for fintech, blockchain, digital assets and equity crowdfunding companies.

Investment company First Growth Funds, which operates in the ICO and crypto markets, has provided US$285,000 of funding for the project.

The business plan is that FutureICO will provide a secure and compliant platform for companies wanting to issue their tokens and digital currencies.

First Growth Funds executive director Anoosh Manzoori says: “We see a big opportunity to invest in FutureICO to help us position for future growth in the cryptocurrency market. Over the coming years we expect the cryptocurrency market to mature, undergo further regulatory changes and blockchain technology to go mainstream.

“We want FutureICO to become the destination for compliant ICO opportunities.”

The emphasis on compliance comes against a background of recent Australian Securities and Investments Commission enforcement activity involving several ICOs.

ASIC says it has identified a number of probems with ICO offerings and crypto-asset managed investment schemes. These include the use of misleading or deceptive statemnets in sales and marketing material, operating an illegal unregistered managed investment scheme and not holding an Australian financial services licence.

So far this year ASIC has stopped five ICOs raising capital because they did not have appropriate investor protection. Earlier this month it issued a stop order on a product disclosure statement for New Dawn Fund.

 

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