Initial coin offerings have become an integral part of the cryptocurrency ecosystem but not all governments look favorably upon this particular business model. In New Zealand, things are heading in an interesting direction, as later this year, the region will witness the launch of its first officially backed ICO.
New Zealand Embraces ICOs
It is rather interesting to see how different countries approach the concept of initial coin offerings. Considering how this “unregulated” means of raising money has proven to be very successful, it is only normal that regulators crack down on this industry sooner or later.
In New Zealand, initial coin offerings have not taken off just yet. The region has never seen an official ICO to date, although that situation has come to change. Coingrid Ltd has received the green light to conduct the nation’s first initial coin offering later this year. The firm has attracted key staffers with expertise in computer development, law, marketing, and so forth. With this ICO, the team aims to build a native cryptocurrency exchange in order to make alt assets more accessible for everyone.
How Will All of This Work?
During the ICO, CoinGrid tokens will be sold to investors in exchange for Ethereum. These tokens will provide access to various services and features once the company’s native exchange platform goes live.
Although this is not a new way of doing things within the ICO industry, it remains to be seen how New Zealand’s regulators will respond to this unique route for raising funds.
With the ICO scheduled for September, there is still plenty of time for the New Zealand government to intervene in one way or another. Whether or not they will do so, is a different matter.
Any company looking to organize an initial coin offering needs a backup plan and Coingrid seemingly has that in place. They plan to launch a cryptocurrency brokerage platform if they can’t raise enough funds in the process. Even so, one could still argue these ICO tokens are securities in a way, which is a topic of conversation regulators will need to keep close tabs on for the foreseeable future.