More ICO Warnings As EU Issues Two Regulatory StatementsNovember 14, 2017 2:03 pm
On Monday, investors and participating businesses were issued two additional warningsby European Union regulators about Initial Coin Offerings (ICOs), Cointelegraph.com reported.
The European Securities and Markets Authority (ESMA) raised concerns ICOs may not conform to regulatory norms, the report said.
A report summary said “ESMA has observed a rapid growth in ICOs globally and in Europe and is concerned that investors may be unaware of the high risks that they are taking when investing in ICOs,” according to Cointelegraph.
The statement added: “Additionally, ESMA is concerned that firms involved in ICOs may conduct their activities without complying with relevant applicable EU legislation.”
The ICO industry, the report said, has “concerns” as it undergoes major changes. In fact, pressure from lawmakers has appeared to cause a slowdown in the number of token sales and amounts raised.
Cryptocurrency legislation is getting closer to reality, the report said, with global FX market CME Group announcing its Bitcoin futures trading would likely go live by the middle of next month.
Meanwhile, the report said, ESMA has reminded firms involved in ICOs of their required adherence two four specific EU directives on anti-money laundering (AML).
“It is the duty of the firms themselves to consider the regulatory framework, seeking the necessary permissions and meeting the applicable requirements,” it added.
In addition to Europe, individual countries – including Canada and the UK – have voiced similar worries about the need for securities compliance in recent months, while Chinese exchange BTCC’s CEO Bobby Lee has said he considers it unlikely China would reverse its ban on the practice in the near future, the report said.
– WN.com, Jack Durschlag