A Comparative Study Of Extraterritorial Practices Of ICO Regulation And Its Implications For China

With the development of modern science and technology,financial technology products based on the Internet and blockchain,supplemented by big data and artificial intelligence technology,are more and more closely related to the general public.Among these fintech products,ICOs are relatively mature.This paper will take ICOs as an example to study the differences in regulatory practices of fintech products in different countries,and try to find a regulatory model of initial coin offering that is suitable to China's national conditions.For ICO regulation,ICO legal attribute is the primary task,so this paper first analyzes the practices of various countries and concludes that it is the most reasonable choice to include ICO in the regulation of securities law.China adopted a complete ban on regulation,but it did not achieve the desired results.ICOs have the characteristics of avoiding regulation,and Countries' attitudes towards ICOs and relevant legislation are not consistent.In addition,and financial regulation often has the phenomenon of race to the bottom,which together results in the dilemma of ICO cross-border regulation.The expansion of the extraterritorial effect of US securities law at the level of "private law" provides a new idea for the cross-border regulation of ICOs.In recent years,China's new Securities Law has opened up regulations on extraterritorial effects,so the inclusion of ICOs in the securities law system will provide opportunities for cross-border regulation.Therefore,this paper suggests that China adopt the principle of "substance over form" to expand the concept of securities in the Securities Law,and include ICOs as securities for supervision,and adopt similar "behavior-effect standard" to expand the application of securities law outside the territory.This can not only increase the difficulty of ICO issuance,effectively restrain and monitor unreasonable and even illegal financing activities,but also grasp the jurisdiction over overseas ICO activities affecting the Chinese market by expanding the extraterritorial effect of the securities law.