The members of the European Parliament discussed various proposals that could form the basis of the legal framework for regulating the initial coin offering (ICO), CoinDesk reports.
On Tuesday, September 4, the European Parliament’s Inter-party Group on Innovation Studies examined potential ICO related potential benefits and challenges in preparing legislation for the сrowdfunding field.
In particular, the member of the European Parliament, Ashley Fox, proposed to limit the maximum possible amounts of investments attracted within the framework of token-loans by 8 million euros. Also, the legislator insisted on mandatory compliance with KYC / AML procedures (know your customer / counter money laundering).
If approved, these proposals can form the basis of the standard for token-calls. This, in turn, will allow ICO projects to raise funds in any of the 28 EU member states.
“Be sure, as legislators we aim to do ICO maximally possible and successful. Herein and our aim”, – Fox underlined.
During meeting of the group managing director of France Digitale Nicolas Brien declared about a “urgent necessity” to make a push for creation of standard for ICO. According to him, a market “needs legitimization”, thus in every jurisdiction.
Brien also stressed that especially bad things are in the UK, where “no bank” does not serve those who are associated with cryptocurrencies.
“In fact, I welcome this proposal at the European level, as it gives people confidence. I believe we should clearly clarify which tokens are utilitarian, and which are the securities to be transferred, and how the regulator should look at all of this. I think all this has to be done, because ICO is one of the forms of сrowdfunding,” he said.
The representative of the Financial Conduct Authority (FCA) of Great Britain, Laura Royle, noted that her agency “sees significant potential benefits” in a new form of financing.
During the meeting, concrete decisions were not made, but the members of the European Parliament are invited to submit their comments before September 11, which will be considered during the next stage of the discussion.
Earlier, representatives of the European banking organization came to the conclusion that blockchain and smart contracts can solve many problems of the financial sector.