SEC ICO Decision Signals Crowdfunding, Investors Shift From US to Asia

SEC’s decision to regulate cryptocurrency and ICOs could shift investors attention to Asia.
SEC’s decision to regulate cryptocurrency and ICOs could shift investors attention to Asia.

The recent move by US Securities and Exchange Commission to potentially regulate ICOs has excited many ICO investors and companies in the Asian region, as the hot Blockchain-based investing trend could potentially shift to the region.

According to the Bitcoin mining firm Blockchain Global Limited consultant, Sebastian Quinn-Watson, Asia-based advisers, investors and funds are cheering the SEC decision.

“Asia-based advisers, investors and funds are cheering. We have Chinese and Singaporean LPs that are eager to pour more money into the market to attract talented founders and blockchain companies to Asia."

Cryptocurrency activities in Asia

In ICOs, participants invest their money and receive digital tokens in return. One company that is planning to launch a multi-million dollar ICO in the region is Ethereum tech firm Eximchain.

According to the company’s chief executive officer (CEO), Hope Lui, they expect that the number of domestic ICOs that will be conducted in the region, particularly China, will significantly increase in the near future.

In January 2016, the Chinese central bank had announced that it would launch its own cryptocurrency in the near future.

Meanwhile, the central bank of Singapore has drafted a plan called Project Ubin, whose objective is to connect all central banks around the world through Blockchain technology. Under the two-stage project, the global central banks can settle cross-border transactions in real time using the technology.

According to Quinn-Watson, the project’s immediate effect will be the increase in the number of US Blockchain startup companies that will try to conduct their ICOs in the region.

"We expect this to occur and we expect to see other countries that have implemented a ‘fintech sandbox approach’ similar to Singapore to also reap immediate dividends.”