I don't understand how someone can get in trouble for promoting imaginary currency.
Can you get in trouble for promoting fake money from Monopoly and trying to convince people that the collectible value of the Monopoly money will increase?
Can you get in trouble for promoting fake money from Monopoly and trying to convince people that the collectible value of the Monopoly money will increase?
Monopoly money isn’t a security. ICO tokens are. Securities laws, including those requiring disclosure of sales incentives, apply to securities.
From https://www.google.com.hk/amp/s/cointelegraph.com/ico-101/wh...
So basically if you top up your namecheap account it will count as a token? Looks like yes, from this definition. Please explain to me why I'm wrong.
That being said, this particular regulatory disclosure requirement can arguably be considered a prohibition on a form of fraud, on the basis that all paid endorsements where the payment is not disclosed to the target audience are misleading the audience about the endorser's level of genuine interest in the product, and failing to disclose a materially significant fact about the endorsement that a reasonable audience would expect to be disclosed.
I'm not sure if a statutory rule is the best way to address this though. Its rigidity and one-size-fits-all approach may catch a lot of non-fraudulent actions in its net, and avoiding that should be the first priority of the justice system. Common law would better account for the peculiarities of each case and how they weigh into the question of whether an action is fraudulent.
First paragraph.