EU economy and finance ministers apparently will be encouraged to embrace a common strategy on cryptocurrency and will be requested to consider the controlling of trading and policing Initial Coin Offerings (ICOs).
News agency Reuters asserts a Belgian financial research organization named Bruegel – which advises governments on regulatory issues – has documented a report that recommends cryptocurrency in the region ought to be policed. The document also recommends that financial authorities should make European organizations meet certain criteria if they have to issue ICOs. It is evaluated that ICO funding originates in the EU at present records for 30% of the overall market.
Reuters says that a rise in exchange-related business in Europe and “considerable interests in ICOs in EU nations” could compel clergymen to rethink their free approach. As reported, major trades, for example, Binance, OKEx, and ZB.com have chosen to move to Malta. As per the report, such trades may be endured for quite a while “to test and find out about the best ways to deal with this fast-developing technology”.
Bruegel says regulation of bitcoins, all things considered, is impossible because of its virtual nature, however, that of substances dealing with the instruments, such as exchanges, could be subject to stricter rules, as per the report.
As indicated by the Bruegel report, due to a broad crackdown of cryptocurrency in Asia, Hong Kong-based blockchain and crypto trade, Binance is intending to move its home office to Malta and new EU rules on tax evasion will put weight on crypto trades and ICOs. Belgian research organization additionally asserts that regulatory oversight will be left to national authorities. According to the research organization, there is an extension for regulatory arbitrage which can be used to encourage the chances. It is vital to analyze and find out about the prescribed procedures of this quickly developing innovation to exploit the most recent innovation.
Further, the regulation is challenging on a global platform, as in different regions, they have different rules.
As the cryptocurrencies are being used for tax- evasion, terrorist funding etc., which makes necessary to regulate this industry.