ABSTRACT
Initial coin offerings (ICOs) gained popularity in 2017/2018, enjoying the benefits of the hype created by Bitcoin’s record values. This chapter explores the concept of a cryptocurrency and how ICOs have been used to launch countless cryptocurrencies. The advantages and disadvantages of ICOs are considered from the perspectives of the ICO issuer and of the investor, criminal threats are considered, and the regulatory response of the United Kingdom is identified. Cryptocurrencies are a category of virtual currency. The term virtual currencies used alone refers to any currencies, which exist solely in electronic form, having no official physical form. The degree of control exercised may vary according to the practices of the administrator and whether the currency is convertible or not. Bitcoin warrants particular attention due to its high value in fiat currency and because it is the forerunner to the growth of cryptocurrencies.
