The Bank of Lithuania has offered its guidance on cryptocurrencies and the Baltic country’s central bank isn’t holding the door wide open. In a nutshell, Lithuanian policymakers are disassociating themselves from the cryptocurrency asset class, deeming it high risk and warning investors of possible loss. They also singled out upcoming ICOs as being similarly risky and subject to legislative requirements and restrictions.
“An illusion that virtual currencies are supervised or safe can in no way be created,” according to Bank of Lithuania board member Marius Jurgilas.
Meanwhile one of the industry’s highest profile coin offerings is unfolding right in Lithuania’s own backyard. TokenDesk, which dubs itself a marketplace for upcoming ICOs, is led by co-founder and CEO Gintaras Tamosiunas who is also former member of Lithuanian parliament.
TokenDesk’s entire business model revolves around ICOs, with the project having developed a single platform by which investors can discover token sales and participate by purchasing tokens – all in one place with a single token wallet.
A Disconnect Exists Between Policymakers and ICO Issuers
What’s concerning is TokenDesk believes that upcoming ICOs “will become an integral part of the financial sector.” Meanwhile one of the takeaways from the Bank of Lithuania’s guidance is that “financial services must be clearly disassociated from activities related with virtual currencies” as per the central bank’s statement.
For instance, locals shouldn’t be able to load their ATM card up with bitcoin or ether coin to make purchases, and banks should in no way give the impression that they’re linked to any cryptocurrency ecosystem. Clearly a disconnect exists between the views of policymakers and the expectations of the ICO community
Meanwhile, the framework surrounding the upcoming ICO market is beginning to resemble that of the stock market. ICO issuers must publish a prospectus if digital coins possess features that resemble those of securities. The document must be approved by regulators and the issuer must operate under the Law of Securities.
Demand for the Token Desk ICO has been robust based on the 48-hour pre-sale results in which the TDS tokens were sold out. TDS tokens are scheduled to be listed on several exchanges including BitFinex, Kraken and Bittrex. Token Desk coins are in limited supply and can’t be mined.