A Critical Appraisal of Initial Coin Offerings

2018 ◽  
Vol 3 (2-3) ◽  
pp. 1-171
Author(s):  
Dominika Nestarcova
Keyword(s):  
Capital Markets ◽  
Network Effects ◽  
Self Regulation ◽  
Secondary Market ◽  
Fiat Money ◽  
Funding Model ◽  
Current State ◽  
Start Up ◽  
Regulatory Approach ◽  
Initial Coin Offerings

AbstractInitial Coin Offerings (ICOs) emerged in 2017 as a revolutionary form of raising capital by technology companies and investment vehicles. ICOs enable start-up companies to issue blockchain-based assets (‘digital tokens’) to the public in return for a payment in cryptocurrencies or fiat money. The fundraising objective is to finance technology projects carried out by the ‘ICO issuer’. The ICO funding model represents a financial revolution as it provides additional pools of liquidity for capital formation purposes and a powerful tool for incentivizing communities through network effects. More importantly, the latent value of ICOs lies in the usage of the raised funds to develop cutting-edge distributed ledger technologies (DLTs). The advent of ICOs mushrooming worldwide promises to democratize financing, yet the commonly unregulated space in which ICOs operate, opens up a Pandora’s Box of investment and legal risks. The present paper argues that regulation needs to be goal-orientated and for that purpose, it is crucial to identify the nature of the ICO funding model, the cryptoeconomics behind it and the legal nature of digital tokens. With ICOs, academia, economists and regulators are at ground zero. Practitioners’ first instinct is to apply the knowledge of capital markets, but ICOs are a fundamentally new model of raising funds that have spawned different dynamics from ‘traditional’ capital markets. If we can establish how to approach ICOs within their own right, then choosing the correct regulatory stance will become a matter of identifying how ICOs and markets interact and how the investment risks can be allocated. Keeping with the spirit of ICOs as a financial innovation, the paper proposes self-regulation by ICO issuers to be a suitable regulatory approach, while limiting the role of regulators to policing the secondary market of crypto-intermediaries. For the purpose of fully rationalizing this position, the paper outlines the process of carrying out an ICO, relevant benefits and risks to the model, the current state of ICO regulation, digital token characterization and merits of different regulatory approaches.

The Current State and Development Prospects of Self-Regulation in the Russian Construction Industry

2019 ◽  
pp. 49-55 ◽  
Author(s):  
N. E. Belova ◽  
L. G. Vorona-Slivinskaya ◽  
E. V. Voskresenskaya
Keyword(s):  
Construction Industry ◽  
Government Regulation ◽  
Self Regulation ◽  
Insurance Contracts ◽  
Construction Design ◽  
State Register ◽  
Stage Of Development ◽  
Current State ◽  
The Government ◽  
Development Prospects

The presented study aims to examine the current state and development prospects of self-regulation in the Russian construction industry.Aim. The study aims to conduct a comprehensive analysis of the current state and development prospects of self-regulation as an institution of public administration, identify the problems of self-regulation in the construction industry, and formulate proposals on solving the identified problems.Tasks. The authors complete the following tasks to achieve the set aim: examine the regulatory framework of the activities of self-regulatory organizations in the construction industry — construction, design, and engineering surveying; analyze the current state and positive trends of self-regulation in the field of construction; identify problems in the activities of self-regulatory organizations in the construction industry — construction, design, and engineering surveying — and development prospects of the examined alternative to government regulation.Methods. The methodological basis of the study comprises the fundamental provisions of the modern economic theory, theories of public and municipal administration and legal sciences. The information base includes regulatory and legal acts of the Russian Federation on self-regulation in the construction industry, data from the State Register of Self-Regulatory Organizations, and statistics in the field of construction.Results. At the current stage of development of self-regulation in the construction industry, the most efficient mechanism for this institution involves guaranteed compensation for damage caused due to shortcomings in the works and services during construction, renovation, capital repairs of construction objects, engineering surveying, design. The victims should be compensated not out of insurance payments under civil insurance contracts, but rather out of the compensation funds of self-regulatory organizations.Conclusion. This study makes it possible to assess the institution of self-regulation in the construction industry — construction, design, and engineering surveying — as an efficient institution for proper protection of the interests of consumers of construction works and services and those of the government. 

scholarly journals Regulating Loot Boxes as Gambling? Towards a Combined Legal and Self-Regulatory Consumer Protection Approach

2019 ◽  
Author(s):  
Leon Y. Xiao
Keyword(s):  
Public Policy ◽  
Video Games ◽  
Consumer Protection ◽  
Real World ◽  
Game Design ◽  
Self Regulation ◽  
Regulatory Approach ◽  
Psychology Literature ◽  
Harmful Effects ◽  
A Current

Loot boxes represent a popular and prevalent contemporary monetisation innovation in video games that offers the purchasing player-consumer, who always pays a set amount of money for each attempt, the opportunity to obtain randomised virtual rewards of uncertain in-game and real-world value. Loot boxes have been and continue to be scrutinised by regulators and policymakers because their randomised nature is akin to gambling. The regulation of loot boxes is a current and challenging international public policy and consumer protection issue. This paper reviews the psychology literature on the potential harms of loot boxes and applies the behavioural economics literature in order to identify the potentially abusive nature and harmful effects of loot boxes, which justify their regulation. This paper calls on the industry to publish loot box spending data and cooperate with independent empirical research to avoid overregulation. By examining existing regulation, this paper identifies the flaws of the ‘regulate loot boxes as gambling’ approach and critiques the alternative consumer protection approach of adopting ethical game design, such as disclosing the probabilities of obtaining randomised rewards and setting maximum spending limits. This paper recommends a combined legal and self-regulatory approach: the law should set out minimal acceptable standards of consumer protection and industry self-regulation should thrive to achieve an even higher standard.

scholarly journals Morocco's Participative Banking Sector: A Cross-Analysis of Current State, Opportunities and Challenges of Its Five Banks and Three Windows

2020 ◽  
Vol 4 (2) ◽  
pp. 8-19
Author(s):  
Oumniya Amrani ◽  
Amal Najab
Keyword(s):  
Banking Sector ◽  
Swot Analysis ◽  
Jel Classification ◽  
Benchmark Study ◽  
Current State ◽  
Start Up ◽  
Net Profit ◽  
Enormous Amount ◽  
Asset Growth

Launched two and a half years ago, the model of Islamic banking adopted by Morocco consists of five banks and three windows. This paper aims to present an exploratory case study of the performance of the eight actors of Morocco participative banking. The study reveals an increase of Murabaha funding and deposits while the total net profit remains negative (MAD -420 million) mainly due to the start-up costs absorbing an enormous amount of resources. Presented in a SWOT Analysis, the study’s results confirm that the sector is facing many difficulties and gaps that negatively affect the business especially the incomplete participative financial ecosystem. Then, the paper presents a benchmark study of Turkey’s participation in banking. Findings show that the financial ecosystem in Turkey is much more developed compared to Morocco. Consequently, this situation favored the rise of the five operational participation banks whose asset growth rate reached 99%, between 2014 and 2018, and recorded positive net profits which exceeded TL 2 billion. Nevertheless, both Morocco and Turkey participation banks are still too young and can make headway only if the regulators and the operators properly address the challenges which hamper their development. JEL Classification: G21, 057.  

Theories of Financial Regulation

2014 ◽  
pp. 1-15
Keyword(s):  
Financial Stability ◽  
Financial Regulation ◽  
Self Regulation ◽  
Policy Makers ◽  
Developed Economies ◽  
Financial Deregulation ◽  
Regulatory Approach ◽  
Pros And Cons ◽  
And Control ◽  
Regulatory Theories

There has been a long-standing debate about the pros and cons of two modes of financial regulation: command and control and self-regulation. These two regulatory modes have been favored by policy-makers and the dominant regulatory theories for decades in developed economies such as US, UK, and Australia. The design of financial regulations, consequently, has oscillated between these two modes during the pre-deregulation and financial deregulation periods in those developed economies. However, a third regulatory approach aimed at maintaining financial stability, which is the vital issue during post-GFC period, is introduced to policy-makers and a broad swath of other constituencies in this chapter.

scholarly journals Towards effective advertising regulation: A comparison of UK, Australian and South African schemes

2002 ◽  
Vol 33 (4) ◽  
pp. 1-12 ◽  
Author(s):  
D. Harker ◽  
S. Cassim
Keyword(s):  
South African ◽  
Self Regulation ◽  
Original Form ◽  
Advantages And Disadvantages ◽  
The Past ◽  
Advertising Regulation ◽  
Fundamental Process ◽  
Regulatory Approach ◽  
The Uk ◽  
Made In

The regulation of advertising is a controversial and difficult process, and many schemes around the world opt for a self-regulatory approach to curb unacceptable advertising. However, when schemes are established or reformulated, most countries learn from other, more established, regimes. Whilst Australia and South Africa commenced the advertising self-regulation (ASR) process at similar times and based their systems on the UK model, two attempts have been made in Australia over the past three decades to produce more acceptable ads, whilst South Africa’s system has endured in its original form. This paper reviews the ASR systems in these three countries, using a macro framework for analysis which contextualises advertising in society. The systems have the fundamental process of handling complaints about advertising in common, however there are advantages and disadvantages of each and these are discussed with a view to providing some guidance for Australia’s fledgling, reformulated, system. Important insights for the development of regulation of advertising are presented.

scholarly journals Goal pursuit: Current state of affairs and directions for future research

2018 ◽  
Author(s):  
Marina Milyavskaya ◽  
Kaitlyn M. Werner
Keyword(s):  
Goal Setting ◽  
Self Regulation ◽  
Goal Pursuit ◽  
Future Research ◽  
Personal Goals ◽  
Current State ◽  
Distinct Unit ◽  
State Of Affairs ◽  
The Many ◽  
Goal Characteristics

Personal goals are ubiquitous in everyday life, with people typically pursuing multiple personal goals at any given time. This paper provides a review and synthesis of the vast and varied research on personal goals. A growing body of research shows that goals are best conceptualized as a distinct unit of analysis, with extensive within-person variations in both goal characteristics and attainment. In this paper, we review existing literature on personal goals, examining the process of goal pursuit from start to finish, including goal setting, goal pursuit and self-regulation, and the outcomes associated with attainment and/or failure. We also address the many aspects of personal goal pursuit that are still poorly understood, highlighting directions for future research.

scholarly journals Infrastructure asset diagnostics: Enabling smarter asset management decisions within the electricity distribution industry

2021 ◽  
Author(s):  
◽  
Richard Vernon Bryson
Keyword(s):  
Asset Management ◽  
Network Reliability ◽  
Time Frame ◽  
Professional Service ◽  
Electricity Distribution ◽  
Current State ◽  
Start Up ◽  
Effective Use ◽  
Project Partner ◽  
Additional Product

<p>This thesis examines the opportunities for better asset management within the electricity distribution industry. The project partner, a supplier of distribution products, observed their customers are often purchasing incorrect equipment for maintenance operations. This observation led the project partner to believe a lack of accurate asset knowledge exists within these electricity distribution businesses (EDBs). Coupled with the information that much of the installed asset base of these EDBs is approaching end of life, it was proposed to investigate the suspected lack of asset condition and type knowledge with the intention of developing the Infrastructure Asset Diagnostic Tool (IADT). A literature review was conducted to determine the current state of asset diagnostics within the electricity distribution industry.   The principles of lean start-up business development have been used to isolate the most needed technology within the New Zealand marketplace through interviews with industry personnel. These interviews helped identify a possible Minimum Viable Product (MVP) for the IADT, and also indicated that providing the IADT as a professional service would be the most appropriate model for the MVP variant.   Condition and type knowledge of wooden poles, conductors and line hardware was found to be the most lacking. It was recommended to focus product development on the assessment of these assets. The project partner has contracted two smart tool suppliers for the analysis of poles and conductor clearances. These products were then integrated to enable accurate assessments of wooden poles. An additional product identified as an aside during the interviews, was for a simple pole designing application which could be used in the field. An existing product from one of the smart tool suppliers contracted can fulfil this requirement.   Possible benefits from IADT use were calculated for a sample EDB. These calculations indicated accurate condition assessment of wooden poles could lead to a saving of up to $5.4 million per year. This saving would equate to a possible reduction in time for securing pole integrity on this network from 30.8 years to just 5.9 years through more effective use of available funding. This reduction would lead to enhanced network reliability and improved public safety in a much shorter time frame than present, therefore this study recommends implementing the MVP form of the IADT at an initial EDB.</p>

scholarly journals MICRO- AND MACROECONOMIC IMPACT OF CRYPTOCURRENCY BUSINESS

2021 ◽  
pp. 78-86
Author(s):  
Ihor Honak
Keyword(s):  
Self Regulation ◽  
Research Abstract ◽  
The United States ◽  
Invisible Hand ◽  
International Economy ◽  
Economic Activities ◽  
Negative Effects ◽  
Fiat Money ◽  
The Third ◽  
The Impact

Introduction. The active development of the international economy leads to the emergence of new financial instruments, which expands the capabilities of economic entities in carrying out efficient economic activities. However, cryptocurrency coins have become a relatively new, widely used financial instrument used by economic entities to increase the efficiency of payments and investments. The cryptocurrency market is growing rapidly and its capitalization is estimated at trillions of dollars. The main purpose of the article is to study the impact of cryptocurrencies on the international and national micro- and macroeconomics in the third decade of the XXI century. Methods. The theoretical and methodological basis of the article is the fundamental provisions of modern economics, the work of scientists. In the process of research, in particular, the following methods were used: analysis - to study the object and subject of research; abstract and logical (theoretical generalizations and formulation of conclusions on the impact of cryptocurrencies on national and international micro- and macroeconomics). Results. It has been established that cryptocurrency mining and trading has become an objective reality in the second decade of the XXI century, and at the beginning of the third decade already has a significant impact on the national and international economy, competing significantly with fiat money and, as far as possible, filling niches, filled fiat money. It has been proven that mining and trading of cryptocurrencies causes both positive and negative effects at both micro and macro levels, both in the international and national markets. It is noted that the circulation of cryptocurrencies is carried out mainly without legislative regulation (except for El Salvador, the United States and several other countries); however, self-regulation through the “invisible hand of the market” is quite effective. As long as there is no significant regulation of the cryptocurrency market, in our opinion, the cryptocurrency market will develop extremely actively, and its regulation by government agencies may hinder its development. Discussion. The obtained results can be used to expand knowledge about certain aspects of the impact of “mining” and circulation of cryptocurrencies on the activities of economic entities at the micro and macro levels. Keywords: mining, cryptocurrency, Monero cryptocurrency (XMR).

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