| dc.description.abstract | Abstract
An Initial Coin Offering (ICO) is a new method of finance raising for entrepreneurs underpinned with Distributed Ledger Technology (DLT). ICOs have the potential to address some of the most critical priorities for financial sector development through reducing barriers for micro, small and medium-sized enterprises in accessing finance and by expanding opportunities for consumer finance and increasing competition in financial services. The main objective of this thesis is to carry out a detailed examination of ICOs in order to answer the following questions: Why should ICOs be regulated, and what kinds of regulation should be used? The issues and challenges of ICOs have been examined in the light of current regulations and case law, including policy papers and reports published by relevant official legislative bodies regarding ICOs and cryptoassets. Based on the findings of this thesis, the proposal is not the replacement of traditional financial methods with ICOs; on the contrary, it is proposed that ICOs should be regulated as a new method within the financial ecosystem to facilitate access to finance and increase financial inclusion. The regulation of ICOs is not only a necessity for ensuring market integrity, but it can also provide a transparent, reliable, healthy, and protected investment environment for participants, prevent fraudulent activities, and address the risk of capital losses with respect to ICOs. In addition, not only are ICOs assessed from a broader legal perspective, but critical legal challenges related to ICOs, such as Smart Contracts, Code as Law, Securities Token Offerings, Non-Fungible Tokens or Tokenisation of Securities have also been examined legally in detail. From this perspective, the aim of this research is to examine ICOs comprehensively in terms of the possible risks, advantages and challenges, to pursue the possibility of regulating ICOs, and to recommend a proper policy for this innovative method in accordance with its unique structure. The aim of the part on policy recommendation is to find innovative solutions to overcome the limitations in terms of regulation and supervision. The focus of this study has been on discussions regarding regulatory theories as risk-based or outcome-based regulation, regulatory innovations that include regulatory sandboxes, innovation offices, and the role of Regulatory Technologies (RegTech) and Supervisory Technologies (SupTech) programs that aim to automate supervisory and compliance processes scrutinising the role for these kinds of innovations in future regulations. | en_GB |
