The Brussels-based think tank Bruegel have developed a report on cryptocurrency and ICOs regulations. This document, seen by Reuters, will be presented to EU ministers who meet on September 7 and 8 in Vienna.
The report states that at EU level, clearer ICO rules and stricter crypto exchange regulation are needed to control risks and exploit the potential of blockchain technology.
EU authorities have already started to ask questions about high volatility and the risk of fraud and money laundering. However, they avoided regulation due to the relatively small size of the market and low volumes of trading in Bitcoin.
This situation is changing, though, because now EU countries account for 30% of the global market in terms of ICO projects funded. The industry is developing in other directions too. Binance, the Hong Kong-based crypto exchange, plans to relocate to Malta after China’s crackdown on the industry.
Bruegel’s report suggests that even if these rules are adopted, they won’t be fully operational in all EU member countries before 2020. Furthermore, regulations will also depend on national authorities.