Yesterday members of the European Parliament held a meeting. In it, they discussed a proposal that aims to standardize ICO rules across Europe. If it’s approved, it will create new regulations that govern initial coin offerings in the region.
The members were from the All-Party Innovation group which exists within the EU parliament. They discussed potential issues and benefits with rules for ICOs. This will set the framework for crowdfunding.
Ashely Fox was in charge of writing the proposal. He proposed an 8 million euro cap on all token sale proceeds. He also proposed anti-money laundering/know your customer requirements.
If the European Parliament approves the proposal, it will be significant for ICOs. This will standardize token sales. It will also allow ICO projects to conduct business and raise funds in any of the 28 member nations.
Fox, a member of the European Parliament said:
“Be assured, that as legislators we’re trying to make ICOs more possible and more successful, that is our aim.”
During the meeting, Nicholas Brien said there was an emergency to act and create a standard protocol. He added that the market needed legitimization from all jurisdictions. The situation is especially bad in the UK where no banks will bank you if you have cryptocurrencies.
Brien who is France digital managing director said:
“Having the certainty, but also having that legitimization, I actually welcome having a European-wide proposal because it gives people the certainty to know. We need to be clear whether this is a utility token or a transferable security, or how the regulator regime looks at that, but this can be done because an ICO is another form of crowdfunding. It’s different, but it is a form of crowdfunding.”
Also, given the prevalence of scams, many members advocated for stricter scrutiny of ICOs.
What do you think of EU lawmakers desire to standardize ICO rules across Europe? Share your thoughts in the comment section below.