The African Digital Asset Framework (ADAF), the first open-source software platform for setting transnational standards for digital assets, has released its first guidelines for Initial Coin Offerings (ICOs), according to the organization’s Medium post published March 25.
In an effort to keep up with the constantly evolving regulatory standards in the blockchain sphere, the ADAF community has recently published its first set of community-driven rules dubbed “Guidelines for Token Generation Events and Initial Coin Offerings.”
Released through the ADAF project, the first distributed standard will serve as a set of guidelines for protecting consumers as well as a minimum standard for ICOs and other similar Token Generation Events (TGEs).
In addition, the ADAF community has also released a set of standards for evaluating and participating in ICOs meant for policymakers, entrepreneurs, as well as consumers. As detailed in Version 0.1 of the “Consumer Protection Guidelines on Token Generation Events,” a step-by-step guideline has been outlined for entrepreneurs launching TGEs, for consumers evaluating token sales, and for policymakers drafting regulatory frameworks for the nascent industry.
The initiative was piloted by the ADAF community comprised of 17 companies across 14 territories, including The Bahamas, Bermuda, Canada, Ethiopia, France, Ghana, Kenya, Malta, Mauritius, Nigeria, South Africa, Trinidad and Tobago and the United States of America.
Launched in November 2018, ADAF was established in an effort to support the continuous growth of distributed ledger technologies and digital assets in line with the sustainable development objectives of the Pan African society. The platform serves as an open source repository for communities seeking to create and support regulatory standards.
As the ADAF community further explained, the impetus behind the creation of regulatory guidelines for TGEs and ICOs were largely driven by the necessity to establish a minimum set of standards that would boost consumer protection and mitigate fraud, thereby promoting more responsible projects.
As the number of fraudulent ICOs continue to rise, entrepreneurs have been increasingly becoming more wary, prompting policymakers across the globe to enforce more stringent legislative measures. Recognizing the paramount importance of addressing these prevailing issues, the ADAF community has established a set of standards which the organization hoped would be adopted by policymakers in drafting legislative frameworks for governing the nascent industry.
While the first version of the guidelines have already been released, a Google Docs version have also been published where community members can leave feedback, suggest amendments, and discuss other potential changes, all of which will be taken into account and possibly integrated in the updated version of the guideline set to be released in June.
In addition to the community’s first distributed standard, ADAF has also disclosed plans of developing a land titling system with oracles and smart contracts, as well as a framework for security tokens and a self-sovereign identity.