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ICO Regulatory Framework

The regulations of ICO vary from countries as it is based on jurisdiction and token characteristics. But first, let’s explore the realm of the Initial Coin Offering. The concept of ICO is that you create a digital token, and then you offer the token for sale in an initial offering. An ICO shares some similarities as an Initial Public Offering. Both are done to raise funds. The ICO you buy gets you a new type of token. It’s an asset rather than a security.

The token can symbolize some sort of value or be a value of itself. An ICO might involve to attribute equity to a token, thus the ownership gives you voting privileges and access to dividends. The typical use case of a token issued in an ICO is the creation of an asset that gives you access to the features of a particular project.

Various countries differ from securities and anti-money laundering laws. The primary countries to identify are the countries in which the fundamental organization manages operations, the resident and citizenships countries of investors of the ICO, and the country where the ICO were introduced. The ICO could be accountable for the regulations of any these countries.

According to Board of Investment (BOI), the Regulatory Sandbox License (RSL) offers the possibility for an investor to conduct a business activity for which there exists on no legal core or enough provisions under existing legislation in Mauritius. The RSL will be issued by the Board of Investments to eligible companies willing to invest in innovative projects according to an agreed set of terms and conditions for a defined period.

Any investor who has an innovative project where there exists no legal framework or enough provisions which cover the materialization of his project may submit a properly filled in application for the issuance of an RSL. The applicant should be able to determine the innovative nature of the project at the local, regional or international level.