TRENDING: Is the smart money becoming fool’s gold?
When Chinese regulators and Wall Street bankers agree on something, it’s worth taking notice. Bitcoin investors beware
It was perhaps inevitable that global financial regulators would step in to try to contain cryptocurrencies — bitcoin being the leading example — in their systems, or to expel it altogether.While they have been bemused by the volatile trading in the currencies, they have become alarmed at the proliferation of a species of financial arrangement called the ICO, or "initial coin offering". Playing on the acronym IPO, but sharing none of the regulatory controls or fiduciary requirements applicable to initial public offerings, ICOs offer punters the opportunity to invest in new ventures that deploy blockchain, the technology behind cryptocurrencies.Blockchain is computer code that makes it impossible to alter a transaction’s history fraudulently because it is verified on a vast network of independent computers across the globe.ICOs appear to have got out of hand — the attempt to issue a currency called Coinye West being a case in point.China has been the first to act, banning ICOs altoge...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.