Virtual currencies(VP) are gradually taking bigger part in the world economy. The European Parliament(EP) is also following the trend by putting more emphasis on them. The EP recently announced a report to support the optimistic approach to digital assets by suggesting regulators to consider virtual currency seriously. Although VP cannot replace the traditional monetary system anytime soon, it will become non-neglectable element of global financial and monetary system.
As a bold movement, the EP stated the changes in Initial Coin Offerings(ICO) crowdfunding guidelines. The movement has activated based on the belief that the virtual currency will be remaining and there should be new laws and regulations to accompany with already existing ones.
Ashley Fox, a member of European Parliament and the representative of the United Kingdom in Brussels, stated the draft proposal for ICOs which was suggested by her about crowdfunding platforms in Europe should be reconsidered. She has given ideas such as the theory of standardization the sale of tokens and the supervision of ICO projects for the legality issue. In fact, there have been some tryouts to come up with solutions to apply regulations for crowdfunding platforms across Europe but nothing has shown a good result yet. However, the European Commission(EC) is continuously working on an official proposal for a foundation which is expected to be released in the beginning of 2019.
The regulations on the crypto market is controversial among the public. One party agrees on the movement in order to prevent crypto crime and illegal scammers while the counterpart sees the regulations are invasive and restrict the growth of the crowdfunding projects. Especially about the centralization and decentralization of crypto exchanges has been a contentious topic but it is clear to see that the EC wants to administer the exchange industry.
Although there are some concerns such as the regulations can be invasive, the EC still thinks that regulations are necessary. A good example case would be ETERBASE, the first regulation-compliant European cryptocurrency exchange, and the bitcoin exchange platform, CEX.IO. Oleksandr Lutskevych, the CEO of CEX.IO, a successful case of the bitcoin exchange platform, showed his favourable stance toward having regulations by stating “Until now, the industry has not had its say on regulation […] The industry is all too aware that regulation will lead to the maturity of the market and ensure businesses remain free from suspicion of involvement with illegitimate uses of cryptocurrency.” It seems like the crowdfunding platforms in Europe will be controlled under regulations to protect investors from potentially deceitful ICO projects.
Author: Jieun Lee