Regulatory pressure on the crypto market is increasing
The European Securities and Markets Authority (ESMA) takes an example from the US Securities and Exchange Commission and is investigating the initial public offerings of crypto known as ICO, Cryptovest writes.
According to the chairman of the institution Stephen Mayor, much of the crypto actives have the characteristics of financial instruments and should fall within a certain regulatory framework.
"The question is what to do with those ICOs that do not fall within this framework, ESMA's management will make that assessment and come up with a specific report on the subject by the end of this year," Major told the Economic Commission in the European Parliament.
In his words, a large part of the primary offerings of crypto coins have "difficulties" in arguing why they are more suited than traditional methods of raising capital.
Currently, the European Union does not apply a unified approach to all crypto. To some extent, this is due to the understanding that over-regulation can undermine the growth of the industry.
Therefore, the actions of the European institutions so far are limited to individual anti-money laundering measures as well as warnings to investors about the potential risks associated with crypto.
However, according to the president of the European Banking Regulator Andrea Enrija, this approach is not effective enough. "Warnings to consumers do not produce the necessary effect and they still do not realize that there is no" rescue network "for this type of investment, Elrich said.
A report by the group of European finance ministers was published in September this year, which also recommends the development of a single policy at EU level aimed at trading with crypto fluctuations and taking into account the decentralized organization of this market.
Efforts of European regulators follow those of their colleagues across the ocean. Earlier this year, US Securities and Exchange Commission Director Jay Clayton said that many of the primary public offerings of cripples are, in fact, a sale of financial instruments and, as such, should fall under the control of the institution.
Until now, however, it has not specifically defined which crypto will fall into this category.
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