EU Lawmakers to Discuss ICO Legal 'Standard'

During the meeting, concrete decisions were not made, but the members of the European Parliament are invited to submit their comments before September 11
05 September 2018   870

The members of the European Parliament discussed various proposals that could form the basis of the legal framework for regulating the ICOs, CoinDesk reports.

On Tuesday, September 4, the European Parliament's Interparty Group on Innovation Studies examined potential ICO-related potential benefits and challenges in preparing legislation for the field of crowdfunding.

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 assured, that as legislators we're trying to make ICOs more possible and more successful, that certainly is our objective.

Ashley Fox

Member, European Parliament

During the meeting of the group, the managing director of France Digitale, Nicolas Brien, announced the "urgent need" to make efforts to create a standard for the ICO. According to him, the market "needs legitimization", and 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 crypto-currencies.

Having the certainty, but also having that legitimization, I actually welcome having a European-wide proposal because it gives people the certainty to know. I think we need to be clear whether this is a utility token or a transferable security, or how the regulator regime looks at that, but I think this can be done because an ICO is another form of crowdfunding. It's different, but it is a form of crowdfunding.

Nicolas Brien

Managing director, France Digitale

The representative of the Office of Financial Regulation and Supervision of Great Britain, Laura Royle, noted that her agency "sees significant potential benefits" in a new form of financing.

Also, she said, ICO enables companies to raise funds from a wide range of investors, and also avoids the many costs of intermediaries. However, she believes, the main risks are associated with broad opportunities for fraud, lack of transparency and volatility of digital coins.

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.

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Pure Bit to Refund Investors' Money

Another cryptocurrency scam storu may have happy ending
15 November 2018   70

The founders of the South Korean exchange Pure Bit, who were suspected of stealing investors' money, announced the return of funds.

According to the local edition of BlockchainROK, representatives of the exchange have already partially returned the money to some users and pledged to return all other funds.

On November 4, the exchange team launched the ICO with the goal of collecting about $ 30 million to create a crypto exchange. However, on November 9, Pure Bit closed the site, said goodbye to its investors and removed everyone from the group in the KakaoTalk messenger. Also, the founders of the exchange withdrew funds from the account that was used for ICO.

According to CCN, one of the issues traced the Ethereum address of the exchange and asked Upbit to block the account and freeze the funds. Upbit fulfilled this request.

This is Pure Bit. First off, I would like to apologize to everyone that was affected by the ICO. Since November 5, I raked in 16,000 ETH and did not open a crypto exchange as promised. I kicked out everyone in our social media chat groups and disappeared without any message. I negatively affected investors in the project psychologically and financially. I made an unforgivable mistake that cannot be turned around, blinded by money. It has been less than a day and I have already started to suffer from guilt. Although it cannot be compared with the hardship faced by the investors, I also felt significant guilt. I sincerely apologize to all of the investors in the ICO who were affected by the operation.

CEO of Pure Bit

The founder of Pure Bit also notified that he would return ETH 16,000 to depositors without taking into account the payment of services to a third-party company that organized ICO.