By Tamara Pupic / Entrepreneur Middle East - Image Credit : ArabianChain
Mohammed Alsehli, Founder and CEO ArabianChain, talks about what we need to know about the ICOs. Here are his thoughts on the brave new world of Initial Coin Offerings (ICOs) and what he had to say about how potential ICOs can be realized in the Middle East.
“ICOs enable you to raise funds without needing a middleman, and that raises an issue for investors, because if you don’t know the person raising funds, they could be anyone, including terrorist organizations and so on. The other issue relates to entrepreneurs because they also don’t have control over who the participants will be. Anyone can participate and, for example, if somebody wants to launder their money through these ICOs, they can do that. At the same time, it is a fantastic tool to enable innovation. So, how can you get that value without bearing that much risk? This is where governments should work with ICOs to enable them rather than ban them.
For now, most of the regional regulators don’t yet recognize ICOs as an official way of raising funds, but at the same time they don’t prohibit it, so it’s in a grey area right now. I think that they are waiting to see how it’s going to evolve because the market is still very young in terms of ICOs, but we’ve witnessed more and more adoption.