ICOs are very attractive for investors and issuers. ICOs allow funding raising in exchange for cryptographically secure tokens, which are a means of paying for future projects or services. However, there is insignificant regulation of this process all over the world. Some countries have banned crypto assets; others have allowed the free use of tokens but do not give them official status. In this paper, the authors present an overview of the legal regulation of ICOs in different countries, dividing them into three groups: in the first group are the countries with developed legal norms and rules for conducting ICO, they have the subsequent circulation of tokens on their territory; in the second group are the countries that are most friendly to ICOs; the third group of countries has a wait-and-see attitude. The author connect the insufficient law regulation and risks of ICOs in different countries. The types of ICO risks are divided into three main categories: financial, technical, and analytical. The main ways to reduce these risks, depending on their types, are highlighted in this study. They are connected with the improvement of the legal regulation of the publication of a White Paper, the KYC procedure, and the involvement of escrow agents.

The article discusses the concept of new financial instruments, known as synthetic assets, which combine traditional finance with blockchain and decentralized finance (DeFi). These synthetic assets are digital tokens that are created artificially using derivatives. They aim to replicate the characteristics of realworld assets, such as stocks, commodities, and currencies, allowing investors to access these assets without owning them directly. These platforms are powered by smart contracts, which enable access to previously inaccessible markets. The author examines the various classifications, operational models, advantages, regulatory challenges, and potential for future growth and integration of synthetic assets into the global financial system. These synthetic assets are classified based on their underlying asset and liquidity/maturity, and their functionality is based on real-time price predictions transmitted through external tools to the blockchain. Key operational principles for synthetic assets include imitating the behavior of their underlying assets, decentralized operation through the use of smart contracts, the use of collateral, often in the form of cryptocurrencies, and mechanisms to increase liquidity. Various strategies, such as the use of derivatives and leverage, are employed in the trading of these assets. The differences between synthetic assets and other financial instruments are discussed. Synthetic assets have several advantages compared to traditional, tokenized, and derivative assets. These include accessibility, improved risk management, partial ownership, lower transaction costs, programmability, and potentially higher liquidity. However, there are also significant risks associated with synthetic assets, such as volatility due to underlying cryptocurrencies, regulatory uncertainty, and the dependence on price forecasts. The author also considers regulatory and law enforcement issues regarding the classification and decentralized nature of these assets.