Will The EU Regulate ICOs?
The European Securities and Markets Authority (ESMA) wants to set new regulations for Initial Coin Offering (ICO). To do so, ESMA examines every ICO case by case.
Last weekend the market regulator unveiled its 2019 budget for monitoring blockchain-related operations. Yesterday, the organization was in the spotlight again.
ESMA needs more control over ICOs
The ESMA is ready to determine new regulations for ICO, Reuters reported on Monday.
Steven Maijoor, Chair of ESMA, spoke before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels. He said:
“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.”
According to Maijoor, ICO had some difficulty showing its worth and superiority over traditional capital rising. The chair of the EU authority thinks that we should take ICOs as a financial instrument and it should come under a whole regulatory process.
Statement by ESMA Chair, Steven Maijoor to the Economic & Monetary Affair Committee @EP_Economics at the European Parliament as part of the annual hearing of the chairs of the three European Supervisory Authorities. 📄👉https://t.co/b4c4fv4pS0 pic.twitter.com/zMqeAYENWc
— ESMA (@ESMAComms) 8 października 2018
Another point of view
Andre Enria, the chair of the European Banking Authority (EBA), thought that ICOs should be allowed to progress without any specific restrictions. Now, he’s changed his mind, because “this is not working as expected.” According to Enria, consumer warnings aren’t effective in cautioning people that there’s a lack of a safety net for ICO investments. More regulation at the European level could be allowed, the chair of EBA said.
Jay Clayton, United States’ Securities and Exchange Commission (ESMA’s counterpart) chair, said in February that every new token’s sale should be secured.
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