The European Commission, the executive body that proposes legislation for the EU, will this year conclude a regulatory assessment for the governance of crypto assets, because they are "here to stay," a high-level has official said.
Speaking at a press conference after a meeting of the Economic and Financial Affairs Council last Friday, Valdis Dombrovskis, vice president of the European Commission, said member states are supportive of moves to chart regulations governing the cryptocurrency industry in the economic region.
"We also had a good exchange of views on crypto-assets. We see that crypto-assets are here to stay. Despite the recent turbulence, this market continues to grow."
Further, he suggested that initial coin offerings (ICOs) have the potential to become a viable form of alternative financing. "Already last year, ICOs helped raise over $6 billion in funding and this year this figure will be substantially bigger," he said.
To make the most of this potential, Dombrovskis said the challenge right now is how to "categorize and classify" crypto assets and whether the EU should use existing financial market rules or create a set of dedicated regulations for cryptocurrencies.
"In this context, we are currently working together with European Supervisory Authorities on what we call regulatory mapping of crypto assets to answer exactly these questions," he said. "This will provide a solid ground to build on and to decide on further steps in this area."
Dombrovskis has previously made positive remarks on ICOs as an innovative fundraising method, as reported by CoinDesk in February. He indicated at the time that regulators would take more of a case-by-case approach to govern specific token projects, although he conceded more work would need to be done by the commission.
And he isn't the lone ICO-friendly lawmaker in the EU. Last Friday, a Member of the European Parliament suggested a new rule governing ICOs that would place an upper cap on token sale proceeds, but would also make eligible projects accessible across EU member states.
EU flag image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Crypto Firms to Congress: We Need Clarity on Blockchain Token Rules
Some 80 representatives from the cryptocurrency and traditional finance industries trekked to Washington, D.C. on Tuesday with a singular message for U.S. lawmakers: we need regulatory clarity on cryp
Japan Regulators Seek Answers in Wake of Zaif's $60 Million Crypto Hack
Japan's top financial regulator is seeking answers from the operator of the Zaif cryptocurrency exchange, a situation that comes days after the trading site disclosed that it lost millions of dollars
Google to Allow Ads for 'Regulated' Crypto Exchanges Next Month
Search engine giant Google has revealed that it will begin allowing cryptocurrency exchange advertisements in the U.S. and Japan, starting in October.
In a new update to its advertising policies, G
Bitcoin Takes a Step Toward Becoming a 'Multi-Network' Cryptocurrency
A proposal to radically expand the capabilities of bitcoin such that it would be able to add vast new features to its limited supply of cryptocurrency has arrived on testnet.
Paul Sztorc, director
Music-Sharing Startup Audius Gives New Details on Twin Crypto Tokens
Soon after closing a $5.5 million funding round, music-focused blockchain startup Audius is revealing just how its network will operate when it launches in roughly a year.
As previously reported, t
Mt Gox Trustee Has Sold $230 Million in Bitcoin, Bitcoin Cash Since March
The trustee for the now-defunct cryptocurrency exchange Mt. Gox has revealed new details about the pace of cryptocurrency sales as part of the firm's bankruptcy and rehabilitation process.
Bearish Cross Hints at More Losses Ahead for Bitcoin Price
Bitcoin (BTC) is on the defensive, having breached crucial support on Monday and could suffer a deeper drop, courtesy of a bearish crossover between key moving averages.
As of writing, BTC is chang
Over 75 New Banks: JPMorgan Expands Blockchain Payments Trial
A major blockchain payments trial launched by JPMorgan, Australia's ANZ and the Royal Bank of Canada has just gained over 75 new banks as participants.
As reported by CoinDesk, the three banks set