EU Lawmaker Wants Standard Regulations to Allow 'Passport' for ICOs

A European lawmaker believes that new regulations for initial coin offerings are the key to making them more "Accessible" within the European Union.

Ashley Fox, a Member of the European Parliament, held a meeting on Tuesday to discuss proposed regulations that would set in place new rules for ICOs and, more specifically, the people and businesses that conduct them.

The MEP's proposal would limit the proceeds for ICOs to 8 million euros, mandate know-your-customer/anti-money laundering rules, and provide token startups with access to the entire EU, he explained in an exclusive interview with CoinDesk.

"ICOs can carry on, but if they don't fill the [criteria], they won't benefit. will give them a passport to the whole of the EU market, and I also think it increases transparency. Right now you have 28 countries, some have national rules for raising money and some don't have any rules at all. If you raise money in France, for example, you can only use that money in France."

The benefit of Fox's regulation, he contended, is that companies that do abide by the rules will have access to a wider market.

European Banking Authority director of banking markets, innovation and consumers Piers Haben, speaking at Tuesday's earlier hearing on Fox's proposed regulation, said the agency had been discussing the topic with financial institutions.

"We're looking at in particular how financial institutions are engaging in cryptos. Financial institutions tell us they do want to hold cryptos for two reasons. Not in order to make money, but to get to grips better with the technology and secondly, they want to hold cryptos so they themselves can invest in ICOs," he said at the time.

Now, lawmakers have a week to suggest any amendments, Fox said.

Sometime at the beginning of next year, the two bodies would have to then reconcile any differences in their positions, with a final vote to approve or disapprove the regulation coming by the end of February, Fox expects.

Because the regulations would be voluntary, ICOs can still raise more than 8 million euros if they need - they just won't receive the benefits, Fox said.