Initial coin offering fraud and investment protection under the European Union and Latvian legislation

Abstract

The research is focused on the current regulatory framework of the European Union and the Republic of Latvia, which partially covers initial coin offering and cryptocurrency, but other countries' jurisdictions are mentioned to highlight possible examples of initiatives taken to define uncertainty surrounding this field in the Republic of Latvia. To understand, if the European Union and the Republic of Latvia do offer investment protection under the existing regulatory framework, it is necessary to understand the correlation, and differences between currency, cryptocurrency, and initial coin offering, therefore the thesis includes characterization of currency and processes behind cryptocurrency and initial coin offering. The research offers insights provided by the case details, arguments and counter-arguments to correspond to current initiatives taken by mentioned Member States and if they hold merit in the reflection of the court judgment. The practical example indicates the importance of how the initial coin offering project is perceived publicly, and the findings are reflected with current initiatives of countries within the European Union.