EU’s Ashley Fox Proposes Cap in Amendment of its ICO Regulation

The report is written on proposed regulations for Europe's crowdfunding platform operators and companies.

Crowdfunding or Initial Coin Offerings is a way for new tech startups to reach a broader spectrum of investors. And since public sales carry on without any directives, participants are at risk of fraudulent activities. The office of Ashley Fox has published a proposal for regulation which aims to protect investors.

ICOs with a threshold of 8,000,000 Euros will fall under this directive. And also, startups that will enter crowdfunding are obliged to follow particular rules in relation to EU’s securities law.

Not withstanding the high standard of investor protection needed, this threshold should be set in accordance with practices on national markets to make the European platform attractive for cross-border business funding.

Draft Report, page 8; on the proposal for a regulation of the European Parliament and of the Council on European Crowdfunding Service Providers for Business

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