What Are the Implications of Cross-Border ICO Offerings under Differing Regulations?

Cross-border ICOs face significant regulatory complexity due to the need to comply with the securities, AML, and consumer protection laws of every jurisdiction where tokens are offered or sold. This "patchwork" of regulations leads to increased legal costs and the risk of inadvertently violating foreign laws.

Issuers often restrict sales to certain countries to mitigate this risk. The differing classifications of tokens (security vs. utility) across borders exacerbate this compliance challenge.