Doing it right, community responds to one of New Zealand's first ICOs

Coingrid ICO and Cryptocurrency Exchange in New Zealand

Coingrid aims to make cryptocurrency more accessible by building a cryptocurrency exchange that provides services for cheaper fees (on par with Binance - lowest in the world) and increasing usability by offering a simple UI that is designed to accommodate both inexperienced and beginner traders.

Coingrid’s ICO starts on 23 November 2018. Their ICO will run for a period of 3 months in order to raise sufficient funds via Ethereum for the development of their new exchange.

Regulatory Compliance and Community Response

To date, Coingrid have adhered to all regulatory formalities to ensure that key players such as  banks, merchants, consumers and Government branches have no concerns about the exchange or cryptocurrency in general.

New Zealand’s regulatory environment has already shown signs of embracing cryptocurrency. For example, the IRD (Inland Revenue Department) have decided to treat cryptocurrency like gold bullion for tax purpose and the FMA (Financial Markets Authority) appear to be taking the view that cryptocurrency projects, such as ICOs, fall within the ambit of financial services.

One of the main issues with trading cryptocurrency in New Zealand is that banks have been shutting down accounts that belong to both individuals and companies related to cryptocurrency. Banks appear to be taking a cautious approach due to the lack of compliance of some cryptocurrency-related businesses and uncertainty that surrounds cryptocurrencies. This is where Coingrid stands out.

“Although the Financial Markets Authority (FMA) does not approve or endorse offers, we have engaged with the FMA in relation to our whitepaper. The FMA has not indicated that it currently has concerns with the drafting of the paper (please note the FMA has not assessed the substance of the offer, nor Coingrid's business processes, nor other documentation). Coingrid is also a registered financial service provider in New Zealand and our goal is to break the barrier between banks and cryptocurrency.”

The community has responded with a lot of positivity and support. Users on Facebook, Twitter and Reddit have shown a lot of support as they believe Coingrid is taking a unique approach to cryptocurrency. Coingrid is hopeful that public support for their project will promote the view that regulation is necessary for cryptocurrencies.