On Monday, Oct 8, 2018, The European Union’s securities and Markets Authority (ESMA) overseer mentioned that the process of examination on every initial coin offering (ICO) operating within its jurisdiction has already begun by the authorities for the for Potential Regulatory Push over the sensitive issues concerning their viability.
Steven Maijoor, ESMA chair, said he was assessing how ICOs could fit into existing regulation and how they affect competition in the wider capital raising sector.
Although, Steven Maijoor, during Jan. 2018, who notified crypto investors against the ICO’s and counseled them upon the threats of potentially losing the funds by investing in initial coin offerings- now asserting his observing remarks on scrutinizing the current regulations that can be robust for an ICO.
He included that: “So far, these ICOs have been unable to reveal their extra benefits when compared with traditional capital raising companies.”
While defending few ICO’s, Maijoor explained to European Parliament’s economic affairs committee that some ICOs are corresponding to financial instruments and therefore can be applied for regulations. ESMA along with national regulators in the EU are evaluating which ICOs come under existing securities rules on “case-by-case” basis.
Maijoor further uttered: “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.”
In the United States, the Securities and Exchange Commission Chair Jay Clayton said in February he believed most of the sales of new tokens should be considered securities, but it has not classified which coins are securities.
Also, in the EU Economic and Financial Affairs Council (ECOFIN), Valdis Dombrovskis, the European Commission’s Vice President, cited his favor on ICOs and mentioned cryptocurrency is here to say and despite volatility, it will certainly grow.
On the contrary, while favoring cryptocurrencies Dombrovskis recently conveyed his warning too. Although, on the subject matter of ICOs, he vindicated that ICO’s are potentially emerging as a viable form of unconventional financing.
In Dec. 2017, Dombrovskis sent correspondences and communicated to ESMA, European Banking Authority (EBA), and European Insurance and Occupational Pensions Authority (EIOPA), to request them to herald crypto enthusiasts of the probable risk factor associated in the crypto investment.
According to Dombrovskis, ECOFIN is working on the concerns with EBA, ESMA, and EIOPA to reckon and come out with panacea on the prevailing dilemma of creating new laws or apply existing laws to the crypto sector?.
The latest ranking of Countries with approved ICO
Recently, the UAE’s Emirates Securities & Commodities Authority (ESCA) publicized that the nation is positive and heading towards launching security ICOs to help in fundraising along with the traditional method of IPOs for the local businesses in 2019. The ESCA projecting to submit a healthy regulatory framework for ICOs within the first half of 2019 and considering a mandated minimum of 20% women members in boards of publicly listed companies as a step toward equality in addition to encouraging female investors.”
During the former week, the National Policy Committee chairman of South Korea, Min Byung-Doo, underlined the prominence of legalizing ICOs in South Korea’s National Assembly get-together.
Byung-Doo indicated that ICOs are getting bigger and bigger and therefore couldn’t look down or disdained due to the substantial value it can bring through the new businesses in the country.
Last month, in order to get the clarity on the positive status of ICOs and cryptos 15 supporters of Congress requested the explanation on the obfuscation from the U.S. Securities and Exchange Commission (SEC) through a signed letter.