Swiss blockchain association proposes ICO code of conduct
Crypto Valley Association, a Swiss nonprofit supporting the development of blockchain and cryptographic technologies and businesses, has announced the launch of a code of conduct for initial coin offerings.
According to a press release, CVA intends that the framework will guide ICOs on proper conduct, and help to bring clarity and confidence to this new and rapidly-growing asset class.
"With the explosion of innovation surrounding blockchain and cryptocurrency technologies, it is unsurprising that organizations are leveraging similarly innovative financial instruments to raise capital," CVA President Oliver Bussmann said in the release.
Among other points, the code calls on all organizations running an ICO to be fully transparent about all details pertaining to the process, which "should be disclosed in a manner that can be easily understood even by those that are not technologically sophisticated," the release said.
This includes being clear about how funds raised are to be used and how the token will function, as well as providing a clear risk assessment for the underlying technology.
"The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it's our responsibility to support the industry," Bussmann said. "The widespread adoption of this framework, combined with careful supportive regulation would bring stability to an exciting but uncertain trend in blockchain."
Along with the ICO-specific code of conduct, the CVA document includes a general code of conduct for members, and a statement of the association's vision and values.