The European Securities and Markets Authority (ESMA) and the European Bank Authority (EBA), delivered reports urging for the need for the EU to take actions in respect of the regulation of Initial Coin Offerings (ICOs) and crypto-assets.
The distributed ledger technology (DLT) and blockchain technologies have shown great potential for the innovation and efficiency of the financial sector. However, at the same time, these technologies present several risks, including risks for investors and the market, such as fraud, cyber-attacks, and money laundering, considering the absence of specific regulation.
Considering the above, these regulators call EU’s attention regarding the need to have a consistent legal framework at this level, which may be able to contain not only the aforementioned risks, but also to provide for a level playing field across the EU.
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[Photo: Jonathan Chng, available at: unsplash.com]