New ICO regulations from the European Union edge closer

The EU looks to put ICOs on a more formal footing, as it considers a draft new proposal…

The European Parliament is considering new regulations to cover initial coin offerings (ICO) it’s been revealed, as the All-Party Innovation Group within the EU considered the matter at a meeting earlier this week.

A proposal was put forward to the group on Tuesday, that was penned by British Member of the European Parliament (MEP) Ashley Fox. As part of that proposal a cap of 8 million euros has been suggested for new ICOs.

Fox penned his draft report that formed the basis for the proposal this year, and it was published last month. You can find it here.

Said report was considered this week, and it seems that there’s a line between the EU wanting to support ICOs and innovation, and protect people from scams and fraudulent schemes.

CoinDesk reports that – and it’s not a huge surprise – no clear way forward was mapped out during the meeting. Still, Ashley Fox’s draft proposal continues to make it way through the European Parliament system, with the window for amendments to it open for another week. Once said amendments have been submitted, then the document will be open for further debate.

What is clear is that the EU is looking to put in place a legal framework for ICOs. This, in turn, would open a path to the formal regulation of cryptocurrencies and ICOs within the European Union. Ironically, Fox – one of the driving forces behind the proposals – will likely no longer be an MEP by the time the EU puts something concrete in place, given that the UK is set to leave the European Union next March.

More as the story develops.

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