EU lawmakers weigh up new ICO regs
The EU’s All-Party Innovation Group has drafted potential new rules on ICOs and crowdfunding. The European Parliament would still have to green-light the proposals. But if passed they would make it easier for start-ups to deploy tokens and trade them across the EU.
MEPs have till 11 September to submit amendments to the proposal. More broadly it’s thought the regulations could land in substance by March 2019.
More certainty demanded
Coindesk reported that France Digitale managing director Nicolas Brien told the meeting that certainty was greatly needed.
“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.”
Substantial fraud concern remains – FCA
The UK’s FCA remains highly concerned about fraud. It estimates up to 80% of ICOs could be highly suspect.
“We certainly do see a huge potential benefit in this space for firms to raise capital from a broad array of investors and without the cost of an intermediary,” said the FCA’s Laura Royle. The outcome of the meeting was not binding.