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   2067

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.

SEC to Unveil New List of Probable TON investors

One investor in this list is a ex-member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital Mayer Malka
27 January 2020   420

Some names of large investors and the names of investment companies that could take part in the $ 1.7 billion token sale of the Telegram blockchain project became known, CoinDesk reportes with reference to documents issued by the US Securities and Exchange Commission (SEC) in the framework of the current proceedings.

One such investor is a former member of the managing board of the Bitcoin Foundation and partner of Ribbit Capital, Mayer Malka. He during the testimony at the beginning of the month mentioned Telegram CEO Pavel Durov.

Answering a question about whether Telegram is known for investors who can take on the role of validators in the TON PoS blockchain, Durov said:

We didn't put together a separate list of the purchasers who we would assume have experience in validating other networks, although it was obvious that certain investors… such as, for example, Micky Malka that we have discussed earlier, might… have experience in these processes of validation or at least were closely affiliated with parties that had experience in such processes.

 

Pavel Durov

Telegram CEO

In addition, Telegram Vice President Ilya Perekopsky, in one of his reports, named David Jan, the founder of ABBYY, a linguistic solutions development company, among potential investors. According to the correspondence published by the SEC, Ian asked Perekopsky if he could get an allocation in the ICO if he contacted Telegram directly without intermediaries in January 2018. “100 percent,” replied Perekopsky.

Also, TON investors could become the American funds Kleiner Perkins, Fortress, Draper Dragon, Dragoneer, DRW Holdings and Redpoint. This follows from the testimony declarations affixed by the SEC to the recent petition. In eight declarations, TON investors explain what prompted them to purchase Gram tokens. Company names have been removed from all documents, but they have remained in the file names. Sources familiar with the situation confirm that they really could take part in the ICO.

Most of the witnesses interviewed by the SEC indicated that they were interested in the possibility of supporting the Telegram project in the ICO TON, while the messenger itself does not accept funding for its main business. The announced investment amounts are on average $ 5-10 million. At the same time, Kleiner Perkins was initially offered an allocation of $ 15 million, but the company managed to agree on a twice as large investment, it follows from the submitted documents.