Comprehensive Guidelines for the Crypto Token Ecosystem
Token Alliance by The Chamber of Digital Commerce announced its first edition of a comprehensive set of guidelines for the crypto market. The guidelines are meant to shape the responsible growth of crypto token and initial coin offerings (ICO) markets, says the announcement.
The Token Alliance is an initiative formed by the Chamber of Digital Commerce. It has more than 350 global participants, including blockchain and token experts, technologists, economists, former regulators, and practitioners from over 20 law firms.
The three-part report covers regulatory overview, principals, and guidelines for utility tokens and token economic landscapes.
The regulatory review explains country-specific regulations and security laws in relation with utility tokens. These countries include the United States, Canada, Australia, the United Kingdom, and Gibraltar. The report also explains industry principles for token sponsors and trading platforms. These principles help these blockchain businesses to incorporate best of business practices and reduce regulatory risks. It also covers token economics with in-depth coverage into token growth and its evolution landscape along with economic statistics.
In 2017, startups raised more than $7.3 billions by issuing tokens. This is over $100 million more money raised in 2016 according to the report. The trend continues to grow upwards in coming years.
Founder, and President of the Chamber of Digital Commerce, Perianne Boring, said
“We applaud our members who have worked together to form this critical stepping stone on responsible oversight and governance for the token economy. It is a strong step towards self-governance and a powerful tool to help builders and investors create a responsible and successful industry.”
Founding Partner of Delta Strategy Group, former Chairman of the CFTC and Co-Chair of the Token Alliance, Dr. James Newsome, said, “The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation and jobs. This report will serve as an important resource for policymakers seeking to educate themselves and engage in meaningful industry dialogue.”
These Token alliance guidelines are based on the current regulatory landscape and will continue to evolve. There will be more set of guidelines from Token Alliance to address other key aspects of the token economy, the announcement said.
The announcement further invites the community to provide feedback on GitHub .
Additionally, “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners” is a collaborative report to be used as a resource among industry innovators, investors, and policymakers. This first installment addresses so-called “utility tokens,” an aspect of the token economy fighting to be recognized.
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Mandar Pise
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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.
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