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      "body": "ICO’s have been launching quicker than securities regulators can keep up with them. However, the regulators are coming and taking great interest in ICOs.  One of the main functions of a securities regulator is the protection of the pubic. In other words, as we all know, ICOs are advertised all over the web, Facebook being one spot we see them several times each day. This can be of interest to a securities regulator (i.e. a government body) and here are a couple of the issues that will be flagged: (note that some terminology, issues, legal concepts may vary, and probably will vary by jurisdiction, but in Canada, the US, and most common law jurisdictions, most of these concepts will exist and be somewhat consistent – however, if you are planning an ICO, get legal advice as this is just discussion).\n\n![IMG_7332.JPG](https://steemitimages.com/DQmQcUj5ntJHHnS1hftX7dxakFgKbJQjqE8u3fky17WCCRN/IMG_7332.JPG)\n\n1.\tIs the ICO what is known in securities law as a ‘distribution’?  A distribution is a regulated event/activity. It is what regulators seek to ensure is done in a way that minimizes risk to the average Jane and Joe Citizen.  In the likely event that it is a distribution, there are likely some disclosure requirements with strict content standards such as a prospectus, which is the starting point. \n\n2.\tThere are normally some exemptions to the prospectus requirement that a distribution may fit within.  Some possible prospectus exemptions can include such things as friends and family, close business associates, high net-worth investors, crowd-funding, or offering memoranda exemptions. Each exemption comes with its own criteria and tests – regulators aren’t fools. \n\n3.\tDo you fall within a certain jurisdiction? For example, if the corporation doing an ICO has its ‘mind and management’ in a certain province or state, it is likely to be governed by that jurisdiction’s regulator, and that means launching an ICO would likely result in a distribution governed by that regulator. However, even if the corporation is located offshore in an unregulated, or lesser regulated jurisdiction, but an investor is resident in that province/state, it would probably be a distribution in the jurisdiction of the investor as well as in the host jurisdiction of the ICO (probably unknowingly to an ICO).\n\n4.\tRisks: A lot of ICO’s have referral rewards, sort of like an affiliate reward for referring other investors. If you don’t set and enforce rules on how members can target referrals you may end up with a marketer or a media buyer broadly targeting multiple geos to get ICO leads and these affiliates can end up causing you to distribute a security in a jurisdiction which has reporting requirements you may not be able to meet.  The consequence would depend on where you are – if the enforcement arm of the particular regulator can get to you, fines and penalties could be ordered, or if they can’t you may end up with your ICO listed on the offender’s page of the regulator (not good publicity for a corporation who wants to run a legit ICO).\n\n5.\tThis leads us to our 5th flag – marketing methods: the marketing of distributions is also a regulated activity. Regulators again, want to protect the public from unscrupulous methods. In fact, to experienced media buyers / mobile advertisers, this concept wont be foreign, as this is the way many non-regulated industries are going anyhow. Mobile advertising now has non-governmental organizations and industry leaders joining campaigns to combat deceptive marketing and fraud. The goal is to protect the user as well as the advertisers. Certain marketing methods may trigger what is known as ‘dealer registration’ requirements. Registering as a dealer is not an easy process and comes with many hoops to jump through. The alternative is to hire an exempt market dealer, which will be costly. However, these must be countered against the benefits of doing an ICO. \n\nThis was not intended to go into every potential issue you may run into if you want to launch an ICO, it only is intended to discuss some of the considerations you will need to get legal advice on.  This is not legal advice, a Captain Obvious reminder, legal advice will be specific and cost something, maybe some Bitcoin!",
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      "author": "garnetb",
      "body": "For sure and what a wonderful concept and opportunity! The Four hour work week, and other similar era books kicked off the concept. The newest version of this includes online marketers and more recent, crypto traders and the early adopters of BTC, the envy of the masses.",
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