French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014

French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014

Regulation

France’s financial markets regulator, the Autorité des marchés financiers (AMF), has published a report examining trends relating to initial coin offerings. The AMF describes ICOs as a “marginal” method of financing, estimating that the global ICO industry has raised €19.4 billion ($21.9 billion) since 2014.

Also Read: Russian Developers to Help Iran Build Its Crypto-Economy

Significant Centralization of Capital

French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014The AMF report notes an “acceleration” in ICOs over the last two years. It estimates that €5.6 billion ($6.3 million) was raised via ICOs in 2017, equating to 1.6 percent of global equity financing for that year. Throughout 2018, the regulator estimates that ICOs have raised €13.4 billion ($15.1 billion) so far, accounting for 69 percent of the total raised by all ICOs since 2014.

The AMF report also points to a significant centralization of capital within the ICO sector. It estimates that just 17 ICOs have raised approximately 40 percent of the total sum generated by the industry thus far.

French ICOs Grab ‘Modest Share’ of Global Sector

French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014The AMF describes French ICOs as “accounting for a modest share of this new type of financing.” The report estimates that a total of 15 ICOs have collectively raised €89 million ($100.5 million), meaning that French token sales have represented just 0.46 percent of the total sum raised by the global ICO industry.

While the majority of ICOs have focused on “blockchain or trading applications,” the AMF believes that projects are now increasingly “diversifying into other sectors.” It also notes that “most of the upcoming ICO projects” have previously raised financing through “traditional funding channels.” In addition, the AMF reports that the majority of ICOs thus far have taken place in the United States.

AMF Advocates International Regulatory Cooperation

French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014The AMF argues that the key “success factors of an ICO” include the need for robust and transparent anti-money laundering procedures. The report also emphasizes the need for “appropriate regulation” to guide the ICO industry. The AMF claims that “given the cross-border nature of these projects, the diversity of regulatory approaches at the international level is a point of vigilance.” It adds that “in this context, international and European cooperation is essential” in the identification of fraud and the development of coherent regulatory frameworks.

Do you think that ICOs have reached their peak this year? Or is more growth in sight? Share your thoughts in the comments section below!


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US Regulator Wants to Adopt Blockchain to Maintain Pace with Market Manipulators

The chair of the U.S. Commodity Futures Trading Commission (CFTC) has said that he wants to adopt blockchain to “keep pace with those who attempt to defraud, distort, or manipulate” financial markets.CFTC Chairman Giancarlo Envisions Compliance Built into Business Operations Through Smart ContractsJ. Christopher Giancarlo spoke about the use of blockchain and machine learning for regulatory purposes at Georgetown University. The head regulator is confident the digital era will prove to be a positive factor to better oversee financial markets.“These tools will become even more paramount as emerging blockchain technologies seek to decentralize markets or disintermediate traditional actors. It is critical that we have the ability to keep pace with those who attempt to defraud, distort, or manipulate.”Giancarlo gave several examples of adoption of new technologies at the regulatory level.These include “using machines to independently identify segments of the markets where concentration risks or unrecognized counterparty exposures are emerging and flag them for staff consideration and action” and “new machine-learning based surveillance tools” designed to “sniff out patterns of likely illegal trading activity or attempts to manipulate markets for enforcement analysis.”The CFTC chair said the ongoing digital revolution in the world’s trading markets have far-ranging implications for capital formation and risk transfer. He added that he expects the majority of standard tasks to be managed by machines as automation technologies are paired with blockchain to standardize and distribute data to market actors and regulators.“We can also envision the day where rulebooks are digitized, compliance is increasingly automated or built into business operations through smart contracts, and regulatory reporting is satisfied through real-time DLT networks. The machines here at the CFTC would have the ability to communicate regulatory requirements and consume and analyze the data that comes in through such systems.”Giancarlo has recently stated that cryptocurrencies “are here to stay” and that many countries across the globe are hungry for functioning currencies, which shows there is a market for digital currencies. He is, however, skeptical about cryptocurrencies’ ability to rival the dollar or other hard currencies.While the U.S. CFTC is yet to adopt blockchain technology to better oversee financial markets, the financial watchdog has won its first Bitcoin fraud action. A  New York federal court has ordered Gelfman Blueprint and its CEO Nicholas Gelfman to pay over $2.5 million in civil monetary penalties and restitution over their +$600,000 Ponzi scheme.Related Reading: CFTC Chair: Cryptocurrencies Have a Future, They Are Here to StayFeatured image from Shutterstock.

Texas Takes Action Against Cryptocurrency Mining Company Promising 200% Profit

Texas Takes Action Against Cryptocurrency Mining Company Promising 200% Profit

Regulation

The Texas State Securities Board has issued an emergency cease and desist order to an Australia-based cryptocurrency mining company and its affiliates. According to the order, the company represents that investments in its mining contracts are “guaranteed to 200% profit.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Cease and Desist Order

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe Texas State Securities Board on Tuesday issued an emergency cease and desist order to Sydney-based Aws Mining Pty. Ltd. and nine other respondents affiliated with the company. The entities named are Automated Web Services Mining (Aws Mining), Mycoindeal, Aws Elite, and West Texas Oilfield Cloud Miners Club.

Sydney-based Mycoindeal provides wallet services for investments issued by Aws Mining. Aws Elite is a multi-level marketing organization for Aws Mining based in Pennsylvania. West Texas Oilfield Cloud Miners Club, an affiliate of Aws Elite, is a Texas-based sales agent for Aws Mining.

The order states:

The investments in the cryptocurrency mining program are ‘securities’ … Respondents are engaging in fraud in connection with the offer for sale of securities … [and] are making offers containing statements that are materially misleading or otherwise likely to deceive the public.

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe board elaborated that respondents are violating the Securities Act since neither they nor their securities are registered with the state’s Securities Commissioner.

They are, therefore, ordered to cease and desist from offering for sale any security in Texas until the securities and all parties involved are properly registered or exempt from registration.

200 Percent Return Guaranteed

According to the order, Aws Mining’s website claims that the company is mining cryptocurrency through farms located in Guangzhou, China; Ingushetia, Russia; Ciudad del Este, Paraguay; Anhui, China; and Hebei, China.

Texas Takes Action Against Cryptocurrency Mining Company Promising 200 Percent ProfitThe order describes that the companies and their executives “are issuing investments in cryptocurrency mining referred to as crypto mining power contracts, and they are representing [that] the crypto mining power contracts are ‘guaranteed to 200% profit’ and that each crypto mining power contract ‘is guaranteed to 200% return on purchase price.’”

In addition, the companies are using a multi-level marketing network of sales agents to sell these mining contracts and recruit new agents on social media. The board emphasized:

They are also telling potential investors the crypto mining power contracts pay a ‘200% passive return on every investment.’

Furthermore, the order noted that “Although potential investors are led to believe they will receive a 200% return on principle invested in crypto mining power contracts,” Aws Mining “is now disclaiming the guarantee of profitability and instead representing that investors assume the risks associated with the investment.”

The board subsequently concluded that the companies and individuals named in the order “are engaging in other illegal, fraudulent, deceptive, and/or misleading practices in connection with the offer of crypto mining power contracts to Texas residents.”

What do you think of Texas taking action against Aws Mining? Let us know in the comments section below.


Images courtesy of Shutterstock and Texas State Securities Board.


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