As it was reported on the 8th of October, ESMA or the European Securities and Markets Authority is now assessing every single Initial Coin Offering or ICO which is operating within its jurisdiction.
The chair of ESMA observing the current regulators
The chair of ESMA, named Steven Maijoor, who warned cryptocurrency investors in January this years that there is a chance that they could lose all of their funds by investing in ICOs, said that he was observing the current regulations which fit an ICO. He added that these ICOs did not have the ability to reveal their extra benefits when compared with some traditional capital rising companies.
He also explained to the Committee on Economic and Monetary Affairs of EU that some ICOs are just similar to some financial instruments and in turn, it could be a subject to regulators.
He said that the subsequent question is what they are going to do with those ICOs which are outside of the regulatory world. He said that they are going to assess that as a board and they expect to report by the end of the year.
The European Commission Vice President commented about cryptos
In the meantime, the Vice President of the European Commission, Valdis Dombrovskis, stated in the EU Economic and Financial Affairs Council or ECOFIN gathering last month that cryptocurrencies are to stay for long. He also added that the crypto market is going to grow, despite the volatility in cryptos.
In December of last year, the vice president also sent letters to ESMA, as well as to European Banking Authority or EBA, and European Insurance and Occupational Pensions Authority or EIOPA, in order to request them to warn crypto enthusiasts of the risks which are potentially involved in a crypto investment.
Although he supported cryptocurrencies in his statement from recently, he conveyed his warning once again. But, on the topic of ICOs, he explained that they had the potential to emerge as a viable form of alternative financing.
Consistently, the EU was struggling with one question: should they create new laws or apply some existing ones to the crypto sector? As the vice president said, ECOFIN is now working with EBA, ESMA, as well as EIOPA in order to find some solutions to these problems.
The approval status of ICOs in some other countries
In September, about 15 members of the Congress signed a letter which requested the U.S. Securities and Exchange Commission or SEC to clarify the status of ICOs, as well as some other crypto assets.
In the meantime, the Emirates Securities and Commodities Authority or ESCA of UAE has recently announced that the country is going to launch ICOs to help raise money for businesses in 2019. The ESCA also has some plans to submit a regulatory framework for ICOs with the first six months of next year.
Last week, the chairman of the National Policy Committee of South Korea, named Min Byung-Doo, emphasized the significance of legalizing ICOs, in the National Assembly meeting in South Korea. Byung-Doo also pointed out that ICOs could not just be dismissed, as they are getting bigger and bigger.