Home / Crypto Currency / EU Watchdog Will Evaluate ‘Every’ ICO for Potential Regulatory Push

EU Watchdog Will Evaluate ‘Every’ ICO for Potential Regulatory Push

european union eu cryptocurrency ico regulation


The European Securities and Markets Authority (ESMA) is assessing every single ICO operating within its jurisdiction, Reuters reported on Oct. 8.

ESMA chair Steven Maijoor — who warned crypto investors in Jan. 2018 that they could potentially lose all of their funds by investing in initial coin offerings (ICOs) — said that he had been observing the current regulations that can fit an ICO. He added that, so far, these ICOs have been unable to reveal their “extra benefits” when compared with traditional capital raising companies.

Maijoor explained to the EU’s Committee on Economic and Monetary Affairs that some ICOs are similar to financial instruments and in turn could be subject to regulations.

“The subsequent question is what do we do with those ICOs that are outside the regulatory world. We will assess that as a board. We expect to report by the end of the year,” said Maijoor.

Meanwhile, the European Commission’s Vice President, Valdis Dombrovskis, said in the EU Economic and Financial Affairs Council (ECOFIN) meeting last month that cryptocurrencies are here to stay. He added that crypto market would grow despite volatility in cryptocurrencies.

In Dec. 2017, Dombrovskis sent letters to ESMA, European Banking Authority (EBA), and European Insurance and Occupational Pensions Authority (EIOPA), to request them to warn crypto enthusiasts of the risks involved in crypto investment.

Even though Dombrovskis supported cryptocurrencies in his recent statement, he conveyed his warning once again. However, on the topic of ICOs, he explained that they had the “potential to emerge as a viable form of alternative financing.”

The EU has consistently struggled with one question: should they create new laws or apply existing laws to the crypto sector? According to Dombrovskis, ECOFIN is working with EBA, ESMA, and EIOPA to find solutions to these problems.

ICO Approval Status in Other Countries

Last month, 15 members of Congress signed a letter requesting the U.S. Securities and Exchange Commission (SEC) to clarify the status of ICOs and other cryptocurrency assets.

Meanwhile, the UAE’s Emirates Securities & Commodities Authority (ESCA) recently announced that the country would launch ICOs to help raise money for businesses in 2019. The ESCA also plans to submit a regulatory framework for ICOs within the first six months of 2019.

Last week, Min Byung-Doo, National Policy Committee chairman of South Korea, emphasized the importance of legalizing ICOs in South Korea’s National Assembly meeting. Byung-Doo pointed out that ICOs couldn’t simply be dismissed since they are “getting bigger and bigger.”

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Read more

Check Also

ZCash Price Briefly Dips Below $125 Despite deVere Support

Even though this past weekend seemed to have a relatively positive impact on the ZCash price, things have taken a slight turn for the worse. There is no reason to panic just yet, but maintaining the $125 level will be an ongoing struggle, by the look of things. The recent positive developments should take care of that aspect with relative ease. ZCash Price Hits a Small Roadblock It is not uncommon for cryptocurrencies to face a small setback after some solid gains. For ZCash, reaching $125 seems to have triggered a lot of market opposition, even though the real resistance sits near the $130 level right now. There is plenty of reason to be excited where ZEC is concerned. Some interesting developments are taking place within this ecosystem right now, all of which might have a positive impact on the price moving forward. Over the past 24 hours, the ZEC value has faced a minor setback in both the USD and BTC departments. Neither change is really significant, even though they push the ZCash price just below $125 again. It appears this will only be a temporary development, albeit it will primarily depend on how Bitcoin’s price evolves in the coming hours. Ongoing bearish pressure on that market will usually send asset spiraling downward as well. The ZCash Sapling upgrade has a lot of people excited, for obvious reasons. Boston Zcash users even organized a Meetup to send the first Sapling shielded transaction on the network. It is a good way of getting people excited about this specific technology and what it means for the ZCash ecosystem as a whole. Be the first to send a #Sapling shielded transaction at our activation party and earn this snazzy #Zcash lapel pin! RSVP: https://t.co/lWDGK2wjvY pic.twitter.com/ZoFKe8FKPi — Boston Zcash Users (@BostonZcash) October 22, 2018 In even more positive news, it would appear deVere Crypto has integrated support for two additional cryptocurrencies. One of those currencies is Zcash, whereas the other is Ethereum Classic. More exposure for ZCash is always a good thing, as it might get more people excited about the project and its underpinning technology. How this will impact the price, remains to be determined at this stage. deVere Crypto are proud to announce Ethereum Classic (ETC) and ZCash (ZEC) are now available on the app.Download deVere Crypto for and get 15 XRP FREE using connect code SM100 #bitcoin #exchange #cryptocurrency #btc #litecoin #ethereum #ripple #xrp #dash #crypto #etc #zcash #zec pic.twitter.com/HhymsWw3Gx — deVere Crypto (@deverecrypto) October 22, 2018 From a technical analysis point of view, it appears things are coming together nicely for ZEC. Sherlock Crypto seems to confirm there is both short-term and long-term market potential for this altcoin. The indicators are lining up nicely, and an extended bull run may go into effect sooner rather than later. For the time being, this small dip should not cause any major disruption where this trend is concerned. Any #Zcash fan here ? I think $ZEC has very big potential in long term, now I see a short term opportunity also. It's on up trend since last weeek, I belive it will continue it's run. Good luck all ! pic.twitter.com/BFayRelzyx — Sherlock Crypto (@sherlockbilir) October 22, 2018 With all of these positive developments taking place, it seems to be a matter of time until the ZCash price goes through another leg upward. Bitcoin is currently dragging all altcoins down a bit, which is a very big problem first and foremost. Unfortunately, it isn’t something one can shrug off that easily, as all markets are linked to Bitcoin in different ways. The post ZCash Price Briefly Dips Below $125 Despite deVere Support appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.