Table 5 Key categories related to institutional response emerged from data analysis

Formal institutions to promote entrepreneurial activities in the crypto-arena

(Laws, regulations, policies and administrative provisions are geared toward stimulating ICOs)

Fiscal incentives and administrative efficiency

(lowering tax rates and regulatory burdens for starting and operating a business)

Low tax rates in Switzerland’s Zug Canton, Singapore, Gibraltar and other jurisdictions

Switzerland’s plan to allow small fintech firms to conduct business without seeking authorization (Werder 2017)

Crypto-ventures can exploit specific opportunities within the existing rules of the game. In addition, regulators have devised mechanisms which potentially redefine

the rules of the game

in order to attract crypto-ventures

Legal clarity of crypto-tokens

(degree of clarification of legal position regarding different types of crypto-token and certainty of their legal protection)

Switzerland’s FINMA a has identified three categories of ICOs and clarified which will be subject to securities law requirements

Singapore’s MAS provided several case studies of security and non-security crypto-tokens with illustrations

Bermuda’s plan to enact bespoke laws for ICOs

These regulators are clarifying the rules of the game in order to reflect the legitimacy of crypto-tokens and streamline enforcement

Measures to enrich blockchain ecosystem

(complex relationships of blockchain firms with key players such as government agencies, industry and trade association, consumers, investors, financial institutions and capital markets and other ingredients)

Canton of Zug: investment in education and efficient infrastructure. Blockchain startups provided with a competitive hiring environment

For disruptive technologies, the rules of the game may need to be changed to include the government's proactive roles in the development of essential ingredients. While negative sanctioning (punishment) focuses on undesired effects, positive sanctioning (reward) can stimulate the growth of this industry

Formal institutions to assess, analyze, and control risks associated with crypto-ventures (Laws, regulations, policies and administrative provisions are geared toward minimizing ICOs’ costs to the national economy)

Regulatory monitoring of ICO ventures

(The existence of a system to observe and check the quality of

crypto-ventures to ensure that they do not violate existing regulations)

The U.S., Bill H.R. 4752: aims to establish an independent Financial Technology Task Force to examine whether and how cryptocurrencies would finance terrorism and subsequently propose regulations to counter such activities

Regulators are creating and establishing new rules of the game to ensure that ICOs and cryptocurrencies are not used to harm the national interest

They want to put in place mechanisms to monitor and evaluate the actions of crypto-ventures and develop a negative sanctioning system that punishes the violators

Sandbox approaches

(A government program for crypto-ventures to test new services and products with partnership and supervisory roles of regulators)

The U.K’s FCA and Canada’s CSA launched “sandbox” programs for blockchain projects

Regulators are looking at how new rules of the game can be introduced in order to encourage the growth of legitimate crypto-ventures and avoiding and neutralizing potential negative consequences