From IPOs to ICOs : The Impact of Blockchain Technology on Financial Regulation

In this paper, by comparing initial public offerings (IPOs) and initial coin offerings (ICOs), we study the impact of blockchain technology on financial regulation. After an initial study of the underlying principles driving both processes, we establish an extensive typology of ICOs and present some of their specific functions relative to IPOs. We then focus on the notion of functional equivalence as it applies to the technology to analyse whether the use of blockchain technology in the context of an ICO can provide the necessary technical guarantees to ensure that fundamental principles and functions of the IPO process are properly verified and performed. Lastly, by assessing current regulatory frameworks, with a focus on Europe and the U.S., we provide a set of guidelines for a possible regulatory framework for ICOs, using France as a case study