The Crypto Valley Association (CVA), the Swiss nonprofit association comprising and supporting blockchain and cryptocurrency development projects, announced on Tuesday the release of an Initial Coin Offering (ICO) Code of Conduct intended as a framework to aid ICOs in making proper legal, financial, and moral decisions during and following their token offerings. The code calls for full transparency from any organizations conducting ICOs pertaining to the details of the process including how the token will function, how the funds will be raised and administered, and any risk factors of the project or technology. The code further stipulates that these disclosures should be able to be understood even by potential participants who are not experts in the underlying technology or otherwise technically savvy.
Chair of the Policy & Regulatory Working Group of the CVA Luka Müller said in a statement, “The growth in popularity of decentralized applications and ecosystems, often launched as so-called ICOs, has caught the attention of regulators worldwide who want to be technology friendly, but also wish to understand the risks associated with the issuing, selling and transferring of tokens by clarifying their function, as well as their legal and tax status. In addition, because of the rise in popularity of ICOs, new categories of contributors participate who are often unaware of the true nature of their investment, and the documentation published to accompany token launches often minimizes or ignores the associated risk.”
The Crypto Valley Association, headquartered in Zug, Switzerland, has grown from an initial membership at the start of 2017 of 16 members to over 550 corporate and individual members by 2018. The Code of Conduct document also contains guidelines for vision and values of the organization, intended to safeguard the reputation of the CVA and frame the way members interact with the broader industry. Members will be requested to annually reaffirm their understanding of and commitment to the guidance set forth in the document.
The president of the Crypto Valley Association, Oliver Bussman, said in a statement, “The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it’s our responsibility to support the industry. The widespread adoption of this framework, combined with careful supportive regulation would bring stability to an exciting but uncertain trend in blockchain.”
To read the Initial Coin Offering Code of Conduct, visit https://cryptovalley.swiss/codeofconduct/.
To learn more about the Crypto Valley Association, visit https://cryptovalley.swiss.