have an account?【sign in】esma advice on initial coin offerings and crypto-assets 2019
bangaauthorThe European Securities and Markets Authority (ESMA) has released new guidelines and recommendations for initial coin offerings (ICO) and crypto-assets in 2019. These guidelines aim to provide clarity and direction for investors, market participants, and regulatory authorities in the rapidly evolving world of blockchain technology and cryptocurrency.
ESMA's Guidelines for Initial Coin Offerings (ICO):
1. Disclosure and Transparency: ESMA encourages issuers to be transparent in their ICOs by providing full and accurate information about the project, the token, and the offering. This includes detailed information about the team, the use of funds raised, and the intended purpose of the token.
2. Investment Claims: ESMA suggests that ICO projects clearly state the investment claims and potential returns for investors. This includes a clear explanation of the risk factors associated with the project and the token.
3. Anti-money laundering and countering the financing of terrorism (AML/CFT): ESMA emphasizes the importance of complying with AML/CFT regulations when conducting an ICO. This includes conducting proper due diligence on investors and ensuring that all necessary reporting requirements are met.
4. Market surveillance: ESMA suggests that market participants implement robust market surveillance measures to detect potential fraud or illegal activities related to ICOs.
5. Regulatory status: ESMA recognizes that some ICO projects may be subject to existing securities laws and regulations. It is essential for issuers to carefully assess their regulatory status and comply with all relevant rules and regulations.
ESMA's Guidelines for Crypto-Assets:
1. Registration and licensing: ESMA encourages regulatory authorities to establish clear guidelines and processes for the registration and licensing of crypto-asset services providers.
2. Market surveillance: ESMA suggests that regulatory authorities implement robust market surveillance measures to detect potential fraud or illegal activities related to crypto-assets.
3. Investor protection: ESMA emphasizes the importance of protecting investors in the crypto-assets market by providing clear disclosure documents, investor education, and effective redress mechanisms.
4. Security laws and regulations: ESMA recognizes that crypto-assets may be subject to existing securities laws and regulations. It is essential for providers of crypto-asset services to carefully assess their regulatory status and comply with all relevant rules and regulations.
5. International cooperation: ESMA encourages international cooperation among regulatory authorities to address the cross-border aspects of the crypto-assets market.
ESMA's new guidelines and recommendations for initial coin offerings and crypto-assets provide a much-needed framework for investors, market participants, and regulatory authorities to navigate the complex world of blockchain technology and cryptocurrency. By providing clarity and direction, ESMA hopes to foster the growth of the crypto-assets market while maintaining appropriate levels of protection for investors. As the crypto-assets market continues to evolve, it is essential for all stakeholders to carefully consider ESMA's guidelines and recommendations in their decision-making process.