On the other side, the world the US Securities and Exchange Commission (SEC) announced that an unregistered ICO would have the pay a civil penalty of $25 million.
The American securities regulator said that Block.one has been operating out of Virginia and Hong Kong conducted an ICO in 2017 and 2018. From the ICO Block .one raised billions of dollars, but it did not register its ICO as a securities offering.
SEC Division of Enforcement co-director Stephanie Avakian said, Several US investors participated in Block.one’s ICO.
Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer.
This essentially in line with the report that the SEC released on the DAO in 2017 which states:
Based on the investigation, and under the facts presented, the Commission has determined that DAO Tokens are securities under the Securities Act of 1933 (“Securities Act”) and the Securities Exchange Act of 1934 (“Exchange Act”). The Commission deems it appropriate and in the public interest to issue this report of investigation (“Report”) pursuant to Section 21(a) of the Exchange Act2 to advise those who would use a Decentralized Autonomous Organization (“DAO Entity”), or other distributed ledger or blockchain-enabled means for capital raising, to take appropriate steps to ensure compliance with the U.S. federal securities laws