A European lawmaker has expressed his belief that new regulations could make ICOs more “accessible” within the EU.
In a meeting organized on Tuesday, Ashley Fox, an MEP (Member of the European Parliament) discussed the newly proposed laws for ICOs.
These, he believes, could help businesses and individuals get involved in the industry in a legitimate manner.
New ICO Regulations Key to Accessibility
Fox stated that the regulations would not be compulsorily enforced; those engaged in token sales can voluntarily adopt them.
His proposal intends to limit ICO fundraising ventures to an amount of 8 million euros. Fox’s manifesto also mandates KYC and AML regulations and would allow token startups to access the entire European Union region.
In his words, “What I’m aiming to do is bring transparency to ICOs, allowing intermediaries to perform the required due diligence. And the effect of this will be to provide an EU-wide law which gives a passport to the whole market.”
Furthermore, he believes that a number of organizations would like to adhere to his regulations with the passage of time.
Fox also added, “ICOs can carry on, but if they don’t fill the [criteria], they won’t benefit. [Introducing the regulations] will give them a passport to the whole of the EU market, and I also think it increases transparency.”
Enter Banks and Financial Institutions
The proposed regulations will have numerous benefits. Organizations that adopt the framework will benefit from access to a larger market.
Lavan Thasarathakumar, secretary to the Innovation Group and a policy advisor to Fox believes that the EU banks are also keen to see the rules adopted.
In the course of his group’s interaction with financial institutions, the issue of due diligence repeatedly emerged. Consequently, Lavan believes that banks are eager to offer services if crypto projects stick to KYC/AML rules.
In addition, if this space can be more regulated, banks are looking forward to holding cryptocurrencies with them directly.
Piers Haben, the director of banking markets, innovation, and consumers at the European Banking Authority said, “We’re looking at in particular how financial institutions are engaging in cryptos.”
Peeping Into The Future
The members discussed the proposal on Tuesday. The lawmakers now have a week to suggest amendments, if any.
The full Committee on Economic and Monetary Affairs would vote on the proposal in November following which the plenary meeting will seal the final fate of the proposal towards the end of the month.
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