Study On ICO Legal Issues And Their Regulatory Models

In recent years,the ICO financing model has created a frenzy around the world.On the one hand,this financing mode brings funds for the development of start-ups that are difficult to obtain traditional financing due to its unique financing advantages;on the other hand,it poses great challenges to the financial supervision of regulatory institutions and even the effective operation of the entire legal system based on the particularity of its technology and products.In this context,different countries have adopted different regulatory ideas,but most countries still encourage the development of ICO with an open attitude.However,China has adopted the prohibition mode,which runs counter to the world trend and ICO development trend.Therefore,in view of the current development prospects of ICO,the author believes that it is necessary to change the regulatory mode of ICO in China in the future.Therefore,it is urgent to study the ICO financing mode and its regulatory mode as a reference for the transformation of China's regulatory mode.This paper is divided into four chapters:The first chapter is the elaboration of the basic theory of ICO.First,ICO is defined from the perspective of its connotation,and then ICO and similar concepts are distinguished from the perspective of extension.Secondly,it introduces the origin and development of ICO and the reasons for its continuous prosperity in recent years.The second chapter is the legal problems caused by ICO.There are two types of legal problems caused by ICO.One is that the tokens issued by ICO,as a kind of virtual currency,have unclear nature and are not issued and circulated by sovereign countries.Another is the dilemma caused by the particularity of ICO financing.The third chapter describes the main ICO regulation methods of the international community.This paper investigates and analyzes the three major ICO regulatory modes in the international community.The three major financing modes in the international community are prohibition mode,securities law regulatory modeand sandbox regulatory mode.Based on the study of the reasons for the rise of various modes and their operational logic,this paper demonstrates the advantages and disadvantages of various regulatory modes.The fourth chapter investigates and analyzes the necessity of China's future transformation of ICO regulation and the useful experience of the international community.The author believes that,on the one hand,the prohibition mode cannot fully realize the original regulatory objectives of this mode,on the other hand,its regulatory effect can be completely replaced by other regulatory modes,and other regulatory modes can even play a better role,so it is necessary to change the regulatory mode.At the same time,based on the investigation of the securities regulatory model and sandbox regulatory model in chapter 3,it is concluded that China can take the development demand of ICO as an opportunity to seek the perfection of the securities law,and should also draw lessons from sandbox regulation to innovate financial regulation.