ICOs are an innovative and increasingly popular method for start-up and other companies to raise capital. An ICO (initial coin offering) is similar to an IPO (initial public offering) in that it allows a firm to raise capital from multiple sources, however rather than issuing shares of ownership (which is the case for an IPO), investors participate in the fundraising of the offering company by transferring fiat currencies (such as US dollar, Euro or Renminbi, or cryptocurrencies, such as Bitcoin or Ether) to the issuer, in exchange for digital "tokens" or “coins”; created through blockchain technology. These “tokens” can then be traded on exchanges, like a stock, and their value will rise or fall depending on the success of the venture.
A significant appeal of ICOs to companies seeking investment, and investors alike, is the regulatory grey-area in which ICOs currently stand. Although it (arguably) "makes things easier" and has proven to deliver "significant rewards in short order", ironically it is also this same regulatory grey-area that has proven to leave investors vulnerable to fraud and land startups in legal trouble.
Regardless of the benefits and risks for all parties involved, over the past recent years, ICOs continue to gain momentum. In 2017 ICOs raised well over USD 3 billion, globally, and the estimates for 2018 show a continued rise.
This significant market growth and the fact that ICOs offer limited protection for all parties concerned, has caught the attention of regulators all over the world. Although an ICO-specific regulatory framework does not yet exist, blockchain technology does not liberate users from the need to comply with the existing regulatory frameworks; in particular, global anti-money laundering laws.
With the above in mind, both ICOs and investors alike, will greatly benefit from globalid.io's Full-Service RegTech Platform.
ICOs who are looking for a solution to perform due diligence on prospective investors (for further KYC clarity and to confidently avoid any future legal troubles) will value globalid.io's unique 4-in-1 Document-Collection Platform for its fully customizable, secure, efficient, and easy-to-use, PCI/DSS-compliant profile collection, management, and storage capabilities.
Additionally, to market an ICO, it is currently common practice that the issuing company publishes a white-paper ("White-paper") on its website and certain virtual platforms. In the White-paper, the issuing company typically describes its business operations as well as the structure and features of the "tokens". To aid in the verification of the authenticity of the White-paper, ICOs can use globalid.io to publish a 3rd Party AML-Verify Me™ certificate. This certificate will display a complete PCI/DSS-compliant profile of themselves, giving their potential investors additional valuable and validating information.
Similarly, investors who are wanting to avoid scams and are looking for a means of performing AML/KYC-compliant due diligence on prospective ICOs (who have not already voluntarily published a 3rd Party, AML-Verify Me™ profile of themselves) can request that the ICO provide an AML-Verify Me™ certificate which gives potential investors valuable and validating information regarding the ICO and its principal officers and operators.
globalid.io's RegTech Platform uses cutting-edge, biometrics, and patented technology to avert identity fraud, fight cyber-crime, avoid illegalities, minimize labor and costs, and increase revenue; all the while effectively and efficiently meeting the KYC / AML regulatory needs of ICOs and investors, alike.
Global ID TECH™ is the first document-collection platform to unify real-time, omni-channel, ON•BOARDING™, GLOBAL•KYC™, BIOMETRIC•AML™, and INTELI•CRM™; all under 1 WHITE-LABEL FRAMEWORK.