EU Lawmakers Proposed New ICO Regulations
August 14, 2018
European Parliament's Committee on Economic and Monetary Affairs proposed new regulations on Initial Coin Offerings in the European Union.
Ashley Fox, a Member of the European Parliament from the United Kingdom, wrote a draft report on proposed regulations of the European Parliament and of the Council on European Crowdfunding Service Providers. He believes that new regulations would be clear for organizers of ICOs, and would allow them to easily understand how to comply with new rules. Fox noted that the proposed regulation cannot become the only solution for regulating ICOs, but it can become a first step on the way for establishing a specific list of standards, that would ensure security of this sphere and would make investments in cryptocurrency projects transparent.
The proposal states that providers of crowdfunding services should be able to "raise capital through their platforms using certain cryptocurrencies", because ICOs can generate fraud risks for investors.
Proposed rules would apply only to ICOs that raise less than €8 million. Also the new regulation would require projects to have a hard cap and follow their local securities laws.
Fox noted that the current proposal is not finalized and that certain changes should be introduced to improve it.