Implementation of ICO European best practices by SMEs
Journal Title: Economic Annals-XXI - Year 2018, Vol 169, Issue 1
Abstract
The article deals with a new financial tool of attracting capital, known as Initial Coin Offering (ICO). In conditions of reduced banking lending and difficult access to finance for SMEs, ICO is viewed to be one of the possible ways to access capital. It considers the main advantages and disadvantages of ICO performance, including its typical features, challenges and regulatory approaches to tax regulation, cybersecurity. The authors of the article determine stages of the ICO mechanism, identifying potential risks and ways to mitigate them, focusing primarily on the need to control and regulate ICO projects. The authors identify the main types of ICO funding, including hybrid and pure funding. The research contains an analysis of ICO trends and their duration for the period of 2013-2017. The capital raised through ICO performance over the period of 2013-2017 is analysed, and determination of the exponential trend line showing the level of its approximation is determined. The study covers the territorial distribution of ICO, in which the top positions regarding the amount of capital raised by ICO are attributed to the USA and EU member states. The existence of ICO regulation in European countries, such as Switzerland and UK, was defined positive in terms of further development of the relevant regulation in the financial market. The article considers the best ICO practices in EU member states. To mitigate risks relating to ICO performance and to increase the level of investment, it would be reasonable to create regulatory rules in every country where cases of ICO performance are reported, based on the practice of the mentioned European countries. The authors give recommendations regarding ICO regulation in Ukraine, taking into consideration the relevant European experience.
Authors and Affiliations
Alla Ivashchenko, Yevheniia Polishchuk, Igor Britchenko
Keywords
Related Articles
- EP ID EP534188
- DOI 10.21003/ea.V169-13
- Views 181
- Downloads 0
Assessment of the competitiveness of enterprises
Introduction. Competition is a unique phenomenon which reveals specific competencies of business entities and allows them to realise their potential. However, businesses need a method for assessing the level of their com...
Prospects of non-ferrous metallurgy enterprises participation in industrial clusters
Formation of industrial clusters network facilitates the competitive potential of territories. Such a development paradigm is defined as the main paradigm among the majority of world countries. This article studies the i...
Shaping the perception and vision of economic operators from the Romania-Ukraine-Moldova border area on interim financial reporting
The issue of interim financial statements for quoted or unquoted companies has become even more relevant in the current context of globalisation of business. The purpose of this research work is to focus on the analysis...
Land fragmentation of agricultural enterprises in the context of administration of land
Introduction. Under the conditions of the excessive lease of the agricultural land in Ukraine, leasing is identified as a tool for amalgamation of land parcels into one field. However, the consequences of excessive land...
Managerial accounting solutions: Lean Six Sigma application in the woodworking industry. A Practical aspect
The increasing complexity of business relations in the conditions of increased competition, manifested in the process of allocation and use of economic resources as well as in the process of seizing the outlets, has led...