Belgian Think Tank Advises Regulation of Crypto Exchanges and ICOs at EU Meeting

Belgian think tank, Bruegel, has sent out a report, advocating for the unified legislation of digital currency ICOs and exchanges to European Union Ministers prior to their upcoming meeting this weekend.
According to Reuters, the Belgian think based in Brussels has released a report calling for scrutiny on cryptocurrencies and how they are distributed to investors. The report would be distributed to E.U ministers during the meeting that would be held in Austria between the 7th and 8th of September, 2018.
The primary message of the report is to inform on the need for regulation of cryptocurrency exchanges and Initial Coin Offerings (ICO’s), so as to ensure risks associated with the industry would be appropriately managed, while the promising potential of the blockchain is maximally harnessed.
The EU would not be regulating cryptocurrencies ‘directly’ because of their virtual nature and intangibility, thus, instead, it has been advised to focus on the key players of the industry which are ICO’s and exchanges. Although, it is almost a fact that the E.U authorities have, up until now, avoided regulating the crypto market because of the low volumes of cryptocurrency currently purchased by Euros, while entities that are operating digital currency trading platforms could also be subject to stricter disclosure rules, or a ban if the need arises.
According to the report released, Bruegel noted the certain methods that could be employed, citing China as an example, with there being a market regulation discouraging the existence of mining farms and even forbidding it.
Citing the recent move of Binance to the buzzing crypto hub, Malta Island, the Belgian think tank has predicted in a report that there may be a “scope for regulatory arbitrage,” this is following the repression in cryptocurrency business across Asia. And it has not failed to stress the importance of learning the best approaches to this ‘fast developing technology.’
While ICO’s have been a haven for fraudsters and scammers looking to dupe anonymously, with the Belgian Authorities releasing persistent warnings against scam cryptocurrency websites and similar blockchain startups, regulating ICO’s and exchanges, however, would go a long way in curbing fraudulent activities as well as ensuring these sites are avoided in the first place.

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