Keeping track of ICO and legal actions

DNHN - Overall state budget income controlled by tax authorities is expected to reach VND 389,320 billion in Q1 2022, which is 33.1 percent of the ordinance estimate and 105.3 per cent more than at the same time last year.

Notably, compared to the same period last year, there were 11/19 revenues in the first quarter of 2022, with the following tax rates and growth rates: personal income tax is expected to increase by 20.6 per cent; land rental and land use fees are expected to increase by 26.9 per cent and 21.1 per cent, respectively.

According to the General Department of Taxation, budget income has increased as the epidemic situation in the nation continues to be handled and production and economic operations recover.

When the first three months of 2022 were compared to the first three months of the previous year, the number of new and returning businesses increased by 36.7 per cent. The total amount of registered capital in the economy increased by 21%, while capital added to businesses increased by 34.5 per cent.

The service sector prospered in the first quarter of 2022 when many service activities resumed activity and expanded in comparison to the same period last year, including financial, banking, and insurance activities, which increased by 9.75 per cent; transportation and warehousing activities, which increased by 7.06 per cent; and wholesale and retail activities, which increased by 2.98 per cent.

Regarding the key solutions to be implemented in the coming years, Director General of the General Department of Taxation, Cao Anh Tuan, directed the units to continue to thoroughly review and comprehend each revenue source and tax in detail each month and in each region, to closely assess and forecast the revenue developments and situation, advising the General Department of Taxation's leaders on appropriate budget management plans, particularly in the context.

To figure out how the ICO will be managed, countries first look at the legal nature of the token and the legal characteristics of the ICO. For example, if the tokens are sold as securities, they have to be approved by the government and be subject to regulation and regulation under their own national securities laws.

Usually, the US, which is the world's top place to start an ICO, has very strict laws.

To figure out whether tokens from an ICO were secure in 2017, the SEC used the Howey (1) test, which is what it found out in July 2017. The safety of the token to keep track of crowdfunding for businesses through the offering registration and information disclosure mechanism, we need to figure out which ICOs are sales of securities and which aren't.

As a result, if the token passes the Howey test, it will be subject to the Commodity Exchange Act (CEA) and the country's consumer protection laws.

As for Switzerland, tokens that are not securities will be treated as assets there as well.

Switzerland is also looking into whether a token can be used as a payment method to fight money laundering and other financial crimes.

The Monetary Authority of Singapore (MAS) does more than just check the contents of the Prospectus. It also lets the public comment on the ICO project through the posting of the Prospectus on the MAS website.

If the information in the Prospectus is correct, then the public's opinion is based on that. MAS will look at public comments and decide whether or not to accept or reject the Prospectus.

This mechanism will make it easier for securities regulators to get information about what people think about ICO projects from the market (including investors, experts, etc.).The newness of ICO activities makes it important for lawmakers to pay close attention to the process of making changes to the law.

This is so that the law can both encourage the growth of this activity and protect the interests of the ICO and its investors.

Examples can be seen of how a regulatory sandbox was made and how it was used, like when it was made and used (Regulatory Sandbox). A "Regulatory sandbox" is thought of as a hypothetical legal environment that is used to see how a new legal framework would work in a situation where there is no governing law, like when new technology is used.

According to this, token issuers who can participate in the Regulatory Sandbox will be the first to be subject to the new rules. After the trial period, the right regulatory framework will be thought of as the official law that governs ICO activities.

Singapore is a good example of how to build and use a regulatory sandbox.

In 2016, the MAS updated its Guide to the Regulatory Framework Testing Mechanism, which says that the Regulatory Sandbox can be used to regulate ICOs. Issuers must report their activities to the MAS at least once a month.

Bui Phuong