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Wednesday, August 16, 2017


Bad news for Americans who want to invest in crypto-ventures abroad. they are now excluded from ICOs as the crypto currencies are starting to be subjected to the same laws as fiat money under the state recognition , "Respectability"
And, so, Monaco Visa asked every applicant Some ICOs Now Ban Americans Who Should Expect More Ostracism question: Are you a citizen of the United States? Those who checked the “yes” box were directed to a page that stated, “sorry, your citizenship excludes you from participation in this ICO due to excessive regulatory risk from your SEC (Security and Exchange Commission)Polybius Bank had a similar reason for excluding Americans from its recent ICO.

What is an initial coin offering (ICO)?

ICO is an initial coin offering, which is very similar to an IPO for a stock. When a startup needs capital to get their company going, they usually get the money through crowdfunding. With virtual currency now, being the most exciting trend, then it would become an even better source of crowdfunding.

Should you invest in initial coin offering (ICO)?

It really depends on your intentions, if you’re looking for a quick buck or a long-term investment. in the former category, then you should definitely invest in you can easily double your investment. For a long-term investment, though, it’s going to be far more complicated. The truth is that a majority of ICOs end up being stagnant or just failing. Many fail because the projects either are not feasible or to competition

Initial Coin Offerings (ICOs) or token sales are the hottest trend to raise funds quickly. In May, for example, the Monaco Visa ICO raised $3 million in 3 days. Debate ensued on whether Monaco Visa was a good gamble, but one category of investors didn’t have to worry: Americans. That’s because Monaco Visa, like a growing number of other ‘foreign’ ICOs, refused to deal with U.S. citizens. [ in some cases the ban is on the broader category of “U.S. Taxpayers.”]

Bank Taxes & blockchain login :

American financial policies have circled the world through tax and compliance treaties that are enforced to varying degrees by signatory nations. Americans are required to disclose income earned and wealth held abroad to the IRS. To maximize the tax grab, the policies also impose onerous reporting requirements on financial institutions with stiff penalties for non-compliance.

State agencies are finally paying attention to crypto currencies and to businesses based on them; that’s an unpleasant but predictable aspect of the increased ‘respectability’ so many people have been seeking. And, to a now attentive SEC, ICOs resemble equity offerings; this category of investment is permitted only to accredited investors. To become an accredited investor, an individual or entity must file a regulatory disclosure form with the SEC in order to demonstrate what is called “financial sophistication” in one of three ways. The individual (or entity) must have an annual income of $200,000 or a joint one of $300,000; he must have a net worth of over $1 million; or, he must be a general partner, executive officer, or somehow in business with whomever is issuing the security.

A financial advisor explained further, “The Some ICOs Now Ban Americans Who Should Expect More Ostracism Onus is on the issuer (in this case, the token sale dev team) to ensure that only accredited investors take part, lest they expose themselves personally and their company to potential criminal liabilities in the United States.”  the issuer is responsible for verifying the status of American customers as well as for filing appropriate documents with U.S. authorities.
As crypto currencies acquire the state recognition that some equate with legitimacy, however, they will be more tightly organized. Companies based on crypto currency will increasingly resemble traditional institutions, such as foreign banks.
Banks, which are called foreign financial institutions, or FFIs, and also foreign entities that are not banks ,have to enter into a compliance agreement with the IRS starting Jan. 1, 2013  , they’ll agree to basically [disclose] the names, Social Security numbers and account balances of U.S. every year. And if they don’t enter into this agreement and they invest in U.S. stocks or securities, or have any U.S. source income, then there’s going to be a 30 percent withholding tax on all payments, including interest, rents, royalties, and things like that.
An excluded American commented , “It’s not because they don’t like us. Both projects (Monaco Visa and Polybius) are seeking licensing from the appropriate financial regulators in the EU, since both projects are trying to bridge the gap between traditional financial systems and crypto currencies. FATCA requirements are so restrictive and intrusive that many foreign banks and financial institutions just refuse to do business with American customers.”

A crypto developer explained the likely impact on smaller businesses. “If I happen to create a service in the crypto world, I am sure to exclude USA citizens because I don’t have money to pay lawyers and then be offered a deal to plead guilty” over an unforeseen or obscure requirement. Excluding Americans is self-preservation.

Central bankers have been interested in the technology from the beginning(block-chain)  many  central banks likes the idea of issuing their own crypto-currency , the Bank of Canada and the People’s Bank of China are running tests. If digital coins were to replace cash, this would open up new possibilities for monetary policy. To increase demand in an economic crisis, for instance, the coins could be programmed to lose some of their value if they are not spent within a certain time.

After many people think that block-chain technology will be out of control from the central banks , & a good source income , will the technology keep its place & distance from central banks ? or in the end american tragic exclude from ICO? Are you one of the investors who was affected by the ban ? what you decide to do if you invest in blockchain ?


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