The EU is expecting a new report on how to deal with ICOs currently outside its regulatory scope…
The European Union continues to juggle the question of how to deal with cryptocurrencies, and specifically initial coin offerings (ICOs). The world of ICOs has been beset with some degree of murkiness, thanks to the fact that not every offering out there is on the legitimate side.
That’s alerted regulators around the world to come up with some kind of position, and in the case of the European Parliament, it’s now expecting a report by the end of the year, with a view presumably to implementing some form of strategy in 2019.
The chair of the European Securities and Markets Authority – ESMA – is a man by the name of Stephen Maijoor. And he’s reported that at present, he and the organisation were examining ICOs on a case by case basis. Furthermore, as per a Reuters report, he was looking into how ICOs fit in the European Union’s existing legislation, and what impact they have on the broader raising of capital.
Reporting to the Parliament’s economic affairs committee, Maijoor added that “some of these ICOs are like a financial instrument. Once it is a financial instrument it comes under a whole regulatory framework”. He then noted that “the subsequent question is what do we do with those ICOs that are outside the regulatory world. We will assess that as a board. We expect to report by the end of the year”.
That report is set to be significant, too, and off the back of it, EU regulators are likely to cement their future approach to ICOs. More on that as we hear it.