Initial Coin Offerings (ICOs) or token sales are a surging 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. [Note: in some cases the ban is on the broader category of “U.S. Taxpayers.”]
Also read: How Hackers Stole $7 Million in Ether From Coindash ICO
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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.
And, so, Monaco Visa asked every applicant Some ICOs Now Ban Americans Who Should Expect More Ostracisma 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.
Right now, American fiscal legislation does not allow citizens of the United States to participate in ICOs. One of the biggest law firms in the world, Hogan Lovells…recommended to restrict sales to American residents. Now, everyone who registers on polybius.io sees a strict warning, stating that American citizens are not allowed to take part in the ICO….After the release onto the crypto-market, citizens of every country will have the opportunity to purchase tokens without restrictions….
Initial Coin Offerings (ICOs) or token sales are a surging trend to raise funds quickly. In May, for example, Monaco Visa ICO raised $3 million in 3 days.
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