What Are the Risks of Using a Non-Compliant Offshore Jurisdiction for an ICO?

Using a non-compliant offshore jurisdiction, often called a "regulatory haven," to launch an ICO exposes the project and its founders to significant legal risk. While it may offer temporary relief from strict regulations, it can signal to major regulators like the SEC or FATF that the project is attempting to evade law.

This can lead to enforcement actions, blacklisting, difficulty securing banking services, and reputational damage, ultimately hindering the project's ability to operate in major markets.