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Can I raise money through an initial coin offering (ICO) without violating securities laws in New York? What are the requirements?

Can I raise money through an initial coin offering (ICO) without violating securities laws in New York? What are the requirements?

Based on the provided context documents, it is important to note that New York State has taken a strict stance on ICOs and considers them to be securities subject to state and federal securities laws [2.2]. Therefore, any person or entity seeking to conduct an ICO in New York must comply with applicable securities laws and regulations.

The New York State Department of Financial Services (NYDFS) has issued guidance on virtual currencies, including ICOs, and requires entities engaging in virtual currency business activity to obtain a BitLicense [2.2]. The NYDFS has also issued guidance on the use of virtual currencies in business transactions, which includes a section on ICOs [2.2]. The guidance states that ICOs may be subject to state and federal securities laws, and that issuers of ICOs must comply with applicable securities laws and regulations, including registration requirements and anti-fraud provisions [2.2].

In addition, the Securities and Exchange Commission (SEC) has issued guidance on ICOs, stating that ICOs may be subject to federal securities laws, and that issuers of ICOs must comply with applicable securities laws and regulations, including registration requirements and anti-fraud provisions [2.2].

Therefore, any person or entity seeking to conduct an ICO in New York must carefully consider the applicable securities laws and regulations, and consult with legal counsel to ensure compliance. Failure to comply with applicable securities laws and regulations may result in civil and criminal penalties.

In summary, it is possible to conduct an ICO in New York, but it must comply with applicable securities laws and regulations, including registration requirements and anti-fraud provisions. It is recommended to consult with legal counsel to ensure compliance.

Source(s):
Jurisdiction

New York