The European Commission wants to classify cryptocurrencies and legitimize ICO

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The European Commission wants to classify cryptocurrencies and legitimize ICO

The European Commission is quite positive about the prospects of cryptocurrencies, and despite the current situation on the market. The Executive body responsible for drafting laws for the entire European Union, intends to classify scriptactive and to create a legislative framework for their turn.

This year the European Commission analyses the cryptocurrency market and assessment of its prospects and potential paths of development. Based on these studies, the experts came to the conclusion that, despite the turbulence of recent times, cryptocurrencies will continue to exist.

Speaking at a press conference held after the meeting of the Council on economic and financial issues last week, Vice— President of the European Commission Valdis Dombrovskis said that many members expressed willingness to support cryptocurrency and to start developing the legislative framework.

According to officials, most of the countries participating in the EU seek to create the conditions necessary for the growth of the market. The Commissioner noted, it is necessary to prioritize the most urgent task, namely to classify the cryptocurrency assets.

In addition, the Commission will examine whether it is possible to apply to the cryptocurrency markets existing financial legislation of the EU or whether to create for this sector, new rules.

Commenting on the results of the work done, Dombrovskis said

In this context, we jointly with the European Supervisory authorities working on what’s called a road map for the settlement of scriptaction, trying to find answers to these questions. The answers will lay a solid Foundation for the construction and will determine the next steps.

It is important to note that, according to the Vice— President, ICO is considered as an alternative form of financing. Last year during the ICO has raised more than $6 billion the Volume of attracted funds and the number of companies that can benefit from the ICO, will be enhanced if this way of getting investment will be legalized.

Vice— President of the European Commission is not the first time comments positively on the technology. Earlier he said that the ICO “advanced and innovative method of fundraising”. According to him, regulators should pay attention to study on an individual basis.

Dombrovskis also pointed out the challenges that might be faced by the industry. Among the challenges he mentioned the lack of transparency, threat of fraud and security breaches, identifying the need for effective tools to combat money laundering.

According to the Commissioner, it is necessary to continue to explore the dynamics of the sector and to cooperate with organizations such as the financial stability Board and the G20.

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