The absence of a solid regulatory foundation for launching ICOs, and also for the companies’ next steps post-ICO, has made them a risky business for everyone involved, which is driving the formation of a new self-regulating body led by some major players in the cryptocurrency market.

“Regulation is clearly an emerging phenomenon and concern in the crypto space. If certain jurisdictions have not yet announced their intentions, then it’s only a matter of time. Waves has always been clear that regulation?—?the right kind of regulation?—?is a good thing for the crypto space. We have also been clear that we want to be a part of that emerging dialogue. We want a seat at the table to be able to shape the future of regulation in the ICO and blockchain space,” says Alexander Ivanov, CEO and founder of Waves Platform.

These players include Waves, Deloitte CIS, the ICO Governance Foundation and the Ethereum Competencies Centre.

This self-regulatory body will be open to all crypto market leaders: exchanges, marketing companies, ICO platforms, blockchain platforms, professional services firms and reputable individuals. 

The legal framework being contemplated will provide companies with standard practices concerning:

> Financial and business reporting

> Legal compliances

> Taxing and accounting

> Know Your Customer practices

> Due dilligence standards

We at SafestHires believe that any affort at self-regulation should necessarily include an ICO Background Check. Without a background check on the founders and leadership team, conducted by an independent third-party screening company, there’s just no way to determine if a company’s founders and leadership team are real people who possess the credentials, professional achievements and capabilities claimed in their bios. 

Submitting to a background check and making the report available to potential investors is the most credible and transparent way to establish legitimacy. If this can be reinforced with adherance to other business standards, all the better.