EU: "the ICO can prove its legitimacy"

[Paha87]

In accordance with the draft report, the Committee on economic and monetary Affairs of the European Parliament is working on new regulations on financing, which may affect some of the initial offering of coins (ICO).

Ashley Fox, a British member of the European Parliament (MEP), proposes to involve some Directors in a new draft regulatory framework on crowdfunding, which has been under development since March.

The report States that while the draft crowdfunding rules "may not provide an explicit solution to regulate the ICO space, they represent a much-needed step to introduce appropriate regulatory measures aimed at protecting investors."

Stressing that ICOS represent "an excellent flow of funding for technology startups," the report proposes that the new structure provide "an opportunity for ICOS that want to prove their legitimacy" in accordance with the requirements of these rules:

To provide a competitive structure, crowdfunding service providers should be allowed to raise capital through their platforms using certain cryptocurrencies, ICOS offer new and innovative ways of financing, but can also generate substantial market, fraud, and cybersecurity risks for investors. Therefore, ICOS must comply with specific additional requirements in accordance with these Rules.

Fox suggests that the new requirements do not apply to every type of ICO. Omissions include ICO, which are considered "private placements" using the counterparty, or projects that aim to attract more than 8 million euros, "the threshold below which the member States of the EU may exempt offers of securities from the obligation to publish a prospectus in accordance with the provisions of article 3 (EU) 2017/1129 of the European Parliament and of the Council."

A recent report jointly published by the consulting firm "big four" auditors posed by PwC and the Swiss Association of crypto valley, outlined the evolving ways in which "rapidly developing space ICO" currently grows worldwide:

In the US, a centralized system is used in which all tokens offered by the ICO are defined as securities. In Europe, on the other hand, differentiated regulation prevails, which classifies tokens into three subtypes: assets, payment and service tokens. Finally, in Asia, regulation is very heterogeneous: from a strict ban to active promotion of ICO projects.

Link to the source of information (Russian) -https://altstake.io/news/es-ico-mogut-dokazaty-svoyu-legitimnosty