European Parliament Member Calls for New ICO Crowdfunding Guideline


European crypto regulators making the news has been a mainstay this year as the continent tussles with the industry to impose new laws and regulations across the sector. A European parliament member is calling for more regulations on ICO crowdfunding guidelines in a bid to enforce a previously muted plan by the parliament’s Committee on Economic and Monetary Affairs.

Two such areas that have received widespread crackdowns across Europe this year are ICOs and crypto exchanges. The call from an E.U. parliament member is a recommendation to introduce new regulations for initial coin offerings, to complement those already in place.

New regulations proposed for ICO crowdfunding

The European member of parliament, Ashley Fox, who represents the United Kingdom in Brussels, is looking to reopen a previously muted draft proposal for initial coin offerings (ICOs). The draft was written by Fox with hopes to impose new rules for crowdfunding platforms across Europe and for other operators.

There have been numerous attempts to figure out solutions to write regulations for crowdfunding platforms across Europe, but as of yet, nothing has come to fruition. The European Commission (EC) is currently working on an official proposal that would create the framework for crowdfunding, but that is not expected to be released until March 2019.

Ashley Fox has recently outlined some of the ideas in the draft, such as a structure that will standardize the sale of tokens and the supervision of ICO projects to ensure their legality. Opinions in the crypto community are divided as some see the regulations as a good step to standardize the marketplace and a move in the right direction, while others believe the proposed rules are overreaching and intrusive.

Many people believe firms that offer crowd-funding should be allowed to use their platform to raise funds for their project, but people such as Fox and other regulators believe that the rise in crypto crime and unscrupulous scammers looking to take advantage of the ICO industry by infiltrating the system needs to be eradicated.

Complying with European crypto exchange regulations

Another area that has also been reeling from crackdowns this year from the European Commission is the crypto exchange industry. The ongoing debate in regards to centralized and decentralize crypto exchanges burns on through the night, but the only thing we can be certain of is the European Commission’s wishes to regulate the exchange industry.

Although some European exchanges have been scornful of regulations, other exchanges across the continent such as the first regulation-compliant European cryptocurrency exchange, ETERBASE, has been making big news as they are increasing consumer confidence in cryptocurrency across Europe by conforming to the laws. The bitcoin exchange platform, CEX.IO, is also another exchange that welcomes regulatory checks and laws from governing bodies. The CEO of CEX.IO, Oleksandr Lutskevych, recently talked about his thoughts regarding the companies that fear regulations by saying that “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 would seem that crowdfunding platforms across Europe will become regulated in the next year with or without the proposed draft from Ashley Fox, in a bid to protect investors from potentially spurious ICO projects on the continent.