Will regulators jump on the cryptocurrencies?
Benjamin Lawsky, former regulator, who was the first ever director of the New York Financial Services Department, and who was among the first to try to regulate Bitcoin, told Money 2020 in Las Vegas on Monday:
“If the ICOs manage to stay out of control, it could result in a reaction against Bitcoin and the entire ecosystem of cryptocurrencies.”
It is the spectacular rise of this means of financing which are the ICOs, and with it, the risks of fraud, which could push the regulators to fall forcefully on crypto currencies.
“Regulators have never seen a new financial product explode at the speed at which the ICOs exploded,” he added.
It is he who from 2011 to 2015 has made a series of changes to the laws of transmission of money adapted to cryptocurrencies.
Since the field of action of these laws has extended to a whole series of virtual currencies as well as to blockchains and also to ICOs.
Token sales through ICO increased by $ 2.67 billion in the last 18 months.
But despite the success, the risk of fraud still exists in this area.