The Committee on economic and monetary Affairs of the European Parliament (ECON) has proposed to create new regulations for public ICO. This is stated in the project document published on the website of the Advisory body last Friday.
The author of the draft report on the legal developments in the field of crowdfunding in the European Union — Ashley-Fox (Ashley Fox), the UK representative in the EP. The preparation of regulations for crowdfunding platforms and operators in Europe is from March of last year at the initiative of the European Commission (the Executive body of the EU).
In the annotation to the document, Fox writes that the collected proposals for the legal regulation theoretically applicable to sentences tokens:
“These regulations give the ICO striving for legitimacy, the ability to act within the law. Despite the fact that this regulation does not include ready-made solutions on the market ICO is still a necessary step towards the standardization and security facilities financing tools for IT startups”.
Also, the draft report said that the company decided to use the ICO procedure for collection of investment required “to permit the accumulation of capital through its platforms and certain cryptocurrencies”. The document takes into account the fact that, by providing “new and innovative channels of financing,” ICO can be used to create and maintain “markets of drugs”, and also represent a potential threat to the security and the financial condition of the investors.
The proposed regulation applies only to public ICO limit threshold charges of 8 million euros. Separately it is underlined that in other cases these rules are not applicable:
“[…] In relation to private companies, the ICO with revenues in excess of € 8 million or ICO without contractors these requirements do not apply”.
Other projects will need to establish a maximum threshold of fees and stick to it, and to comply with some EU laws on securities.
Fox emphasized the urgent need of standards and regulations in this sphere, adding that “primary supply tokens are outside of any legal framework, which makes customers vulnerable to fraud”. However, the MP believes that “further improvement is needed project.”
We will remind that by results of the last G20 legislation about ICO and crypto took over Germany. One of the largest markets of Germany, the Stuttgart stock exchange, has announced the launch of a platform for primary offerings of tokens before the end of the development and entry into force of the relevant laws.