The members of the European Parliament have discussed various proposals that could form the basis of the legal framework for regulating Initial Coin Offering (ICO).
The European Parliament’s Interparty Group on Innovation Studies examined potential ICO-related potential benefits and challenges in preparing legislation for the field of crowd-hosting.
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.
If approved, these proposals can form the basis of the standard for token-calls. This will allow ICO-projects to raise funds in any of the 28 EU member states.
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 cryptocurrencies.
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 that 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.