In a meeting on Tuesday, European Parliament members discussed an indefinite proposal that would create new regulations in initial coin offerings (ICOs); CoinDesk reports today, September 5.
Ashley Fox, a Member of the European Parliament (MEP) wrote and put forward the proposal. The All-Party Innovation Group within the EU Parliament then examined the potential benefits and some matters with ICO rules that would be integrated in a larger crowdfunding framework.
In the proposal, Fox suggested an eight million euro cap on token sale proceeds and on know-your-customer (KYC) or anti-money laundering requirements. Fox’s first draft report was published last month; it also formed the basis of this year’s proposal.
Fox told CoinDesk:
“Be assured, that as legislators we’re trying to make ICOs more possible and more successful, that certainly is our objective.”
The report was weighed this week. From the looks of it, EU is torn between wanting to support ICOs and guard people from scams and fraud. France Digitale Managing Director Nicolas Brien stressed on the emergency to act on developing such a standard.
Brien further explained:
“The market wants legitimization … from every jurisdiction. In the UK it’s particularly bad, none of the banks will bank you if you have crypto.”
Several representatives and regulators also went on to highlight the need for tighter scrutiny of ICOs in the meeting. This is due to the widespread presence of scams that employ the blockchain funding model.
One thing’s for sure, EU is looking to put in place a legal framework for ICOs. Other countries also have been analyzing their own ICO regulations. In late July, the US Chamber of Commerce launched their FinTech Innovation to promote new ways to access ICOs. Meanwhile, Thailand recently released updates on ICO applications.
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