A report by a group of Belgian experts that will be distributed to European Union (EU) ministers calls for unified legislation on cryptocurrencies and greater control over how they are distributed to investors, according to Reuters on 5 September .
The report, apparently released by Brussels-based think tank Bruegel, anticipates an informal meeting of EU finance and economic affairs ministers on cryptocurrency investments and digital economy taxation. The meeting will take place in Austria from 7 to 8 September.
According to Reuters, the report calls for the regulation of the trade in cryptocurrencies and Initial Coin Offerings (ICO) at E.U. level in order to manage the associated risks and exploit the potential of blockchain technology.
At the same time, Bruegel notes that the virtual nature of cryptocurrencies limits regulatory development, while entities managing cryptographic platforms may face stricter disclosure rules,
Building on the overall experience, Bruegel notes the Chinese approach to regulating the cryptocurrency market, suggesting that "as in China, mines can be banned."
The report added that there could be a "possibility of regulatory arbitrage" following crackdown on cryptography in Asia, citing the imminent passage of Binance cryptocurrency to the island state of Malta.
Bruegel notes that regulators should tolerate the cryptic exchanges moving to look for jurisdictions with more laissez rules of faire, stating that it is necessary to "experiment and learn about the best approaches to this rapidly evolving technology gy."
August 30, Bloomberg reported that EU ministers plan to discuss the challenges posed by digital resources and the possibility of tightening up regulations at the next meeting. For a draft note seen by Bloomberg, participants will also discuss a general lack of transparency in the sector and the potential for cryptocurrencies to be used for tax evasion, terrorist financing and money laundering.
Previously, Cointelegraph reported that members of the European Parliament and blockchain experts held a meeting entitled "Regulation of international product organizations – The crowdfunding proposal is what we were looking for?" Tuesday to discuss the possible rules for ICOs. The participants examined the potential complications currently present in the ICO sector.