Steven Maijoor, the chairman of the ESMA, claimed that he had been monitoring the existing policies, which would fit an initial coin offering. He also pointed that to this moment, such offerings had no opportunity to display their true potential when compared to conventional fundraising campaigns.
Maijoor provided an explanation for the Committee on Economic and Monetary Affairs that certain initial coin offerings have some things in common with financial tools and therefore should adhere to regulations.
Furthermore, the question arises regarding the fate of those ICOs that do not fit the regulatory provisions. This issue is subject to a board discussion, with report coming up by the end of 2018, according to Maijoor.
In the meantime, Valdis Dombrovskis, the Vice President of the European Commission, has stated in the ECOFIN meeting held previous month that digital currencies are not a thing that will pass. He also stated that the digital currency market would increase in spite of the fluctuations seen with the currencies.
Overall, the world is moving towards defining regulatory frameworks for digital currency-related activities. The US SEC has received a demand from 15 Congress members last month, wherein the Commission is requested to provide clarity regarding the status of digital assets, including ICOs.
Authorities of the United Arab Emirates have recently made an announcement about launching an initial coin offering to support fundraising for businesses next year. Additionally, the government intends to introduce regulations regarding the ICOs within the first half of 2019.