A meeting of the European Commission was held, at which the EU position on issues related to cryptocurrency was determined for subsequent discussion at the G20 level. The Commission advocated the use of blockchain technology.
"Blockchain technology holds great promise for financial markets. To remain competitive, Europe must embrace this technology". Less reassuring were statements regarding cryptocurrencies and coins: “cryptocurrencies have no guaranteed value and are highly subject to speculation.”
However, it was noted that, as with any investment, there are risks of poor management or bankruptcy, which could lead to unwanted price declines. Risk warnings "must be clear, consistent and heard in all jurisdictions", almost the same thing was said regarding ICOs. "ICOs present opportunities, but there are also significant risks for investors, such as a lack of transparency regarding the identity of the issuers and underlying business plans."
"We do not see any problems with anonymity, but we do share concerns regarding the lack of full transparency of business plans or technical documentation. There is key information that must be provided if the ICO project is a set up company, such as information about profits, revenues, etc., in order for investors to make an informed decision about the level of risk they are willing to accept."
However, it is not entirely clear what course of action the Commission will take based on its findings.
Overall, there is nothing surprising in this statement, although it is not clear, for example, why the Commission is only now saying that it is necessary for exchanges and wallet providers to comply with anti-money laundering laws, since they have already been required to comply for four years. The Commission is very behind in this regard and does not offer any innovative approaches to regulation, and also limits blockchain technology only to financial markets, while there are so many other areas of its application.
But better late than never. The Commission recognizes that the ICO provides opportunities, which is already a good thing. We'll just have to wait and see what comes of it.
According to https://www.trustnodes.com
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