Ashley Fox, the UK’s representative on the European Parliament's Committee on Economic and Monetary Affairs, has drafted a proposal centred on possible ways in which Europe’s crowd-funding platform operators and companies could be regulated.
According to an accompanying note, Fox believes that the proposed framework presents an opportunity to introduce formal regulation of a particular subset public ICOs (those raising less than EUR8m).Fox has recommended that "crowdfunding service providers that wish to offer an ICO through their platform, should comply with specific additional requirements" – specifically, that they should create a cap for crowdfunding efforts, and observe certain securities laws.
The motivation behind the proposed amendment is a reduction in the “substantial market, fraud and cybersecurity risks to investors” associated with ICOs.
What do you think about this news?
Source:
https://www.coindesk.com/european-parliament-proposes-ico-regulations-for-crowdfunding-efforts/
Follow me on Twitter
