Seven Major Regulatory Transformations Triggered by Crypto Failures and Their Ripple Effect on the Global Financial Landscape

Regulatory Transformation 2: ICO Regulations

Initial Coin Offerings (ICOs) emerged as a popular fundraising method for blockchain startups, reaching a peak in 2017. However, the rampant fraud and scams associated with ICOs led to significant losses for investors. Regulators responded by enforcing regulations that treat ICOs similarly to securities offerings, requiring companies to comply with existing securities laws. This has led to a decrease in fraudulent ICOs, protecting investors and adding a layer of legitimacy to the crypto market.