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.
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.
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.