ICO Legal Considerations

It is very common to hear members of the crypto community shout that ICOs are illegal. They are mistaken. There is no law against ICOs. If an ICO is for a utility token, and has passed the Howey test, anyone can participate. Brilliance passes the Howey test and is a true utility token. The SEC has given advice about ICOs, but no laws have been passed as of this writing.

I repeat, no laws governing ICOs have been passed. SEC rules exist for “securities” and some tokens can be categorized as such, but that is what the Howey test is used for.. to assess if the token is a utility or security. For a security token, the US requires that only “accredited” investors be allowed to participate. Brilliance is not a security, and we completely pass the Howey test. In addition, to simplify matters, and because our development team has members in multiple countries, we have legally incorporated in Belize. We are not a US based ICO. To dispel further misinformation, SEC laws do not apply to non US citizens or ICOs.

“There is nothing to prevent citizens of any country from participating in our ICO.”

There is nothing to stop citizens of any country from participating in our ICO. We have taken all necessary steps to ensure that our project is completely legal. There are multiple links in the reference section of the white paper that go over specifics about ICOs, which are repeated here.

 

CFTC: ICO Tokens are Commodities

https://blockexplorer.com/news/cftc-says-that-ico-tokens-are-commodities-but-could-still-be-securities/

ICO token as security or utility

https://arstechnica.co.uk/tech-policy/2017/07/sec-crypto-ico-securities-regulation/?comments=1&post=33710227

 Howey Test

https://medium.com/bittrust/passing-the-howey-test-how-to-regulate-blockchain-tokens-d218da93a8b6

 Token Rights

https://www.smithandcrown.com/token-rights/