The PwC consulting company, working in collaboration with the Swiss Crypto Valley Association, has performed a research that indicated the growing popularity tendencies of the initial coin offerings happening in spite of the adversities the digital currency market endures. As per the PwC’s findings, the token sales volumes have set new records in the first half of the current year.
In the first five months alone, the ICOs have already exceeded the profits made over the whole last year. The token sale carried out by Telegram and EOS deserved a special mention, with the former raising 1.7 billion US dollars and the latter raising an astonishing amount of 4.1 billion US dollars.
The analysis indicates that the United States of America, Singapore and Switzerland have become three main world centers for ICO operations, all thanks to the policymaking progress. In Switzerland, the success is mainly thanks to the Crypto Valley in the Canton of Zug, which focuses its efforts on blockchain, and finance and technology startups.
In terms of policymaking, PwC has singled out three various approaches practiced globally.
In the USA, all coins sold through an initial coin offering are treated as securities, whereas Europe has a differentiated approach, treating tokens in three different ways: as assets, payments and utility tokens – as is the case with FINMA. These three subtypes are not treated as an actual financing, although they provide the purchaser with the access to the goods or service promoted by the coin offering. The third approach is practiced in Asia, where regulations are very contrasted, going from severe prohibitions to energetic advertising of the token sales.
Both policymakers and conventional financial organizations maintain skepticism towards blockchain, criticizing the insufficient supervisory efforts in some jurisdictions, and the lack of insufficient regulations leads to high risks posed on the retail financiers.