FFCON21 Breaking Barriers May 11-13, 2021

European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings

Crowdfund Insider | | Sep 5, 2018

european parliment - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin OfferingsA recent draft of legislation by the European Parliament pertaining to European Crowdfunding Service Providers (ECSP) indicates an interest in rolling in initial coin offerings (ICOs) along with more traditional securities. While still just a draft, the document shows a clear interest in empowering online investment platforms to list ICOs with a proposed amendment stating;

“In order to allow for a competitive Union framework, crowdfunding service providers should be permitted to raise capital through their platforms using certain cryptocurrencies. Initial Coin Offerings (ICOs) offer new and innovative ways of funding but can also generate substantial market fraud and cyber security risks to investors. Therefore, crowdfunding service providers that wish to offer an ICO through their platform, should comply with specific additional requirements under this Regulation.”

The proposed regulation is viewed as an opportunity to regulate ICOs. The EP draft states that issuers can prove their legitimacy by complying with the proposed regulations. While accepting the fact the proposed rules may fall short, the draft calls it a “much needed step towards imposing standards and protections in place for what is an excellent funding stream for startups.”

See:  Gibraltar: Where Is The Best Country To Launch An ICO – Switzerland Or Gibraltar?

On Tuesday this week, Members of European Parliament (MEPs) held a meeting to discuss ICOs as part of a subset of crowdfunding. According to Hogan Lovells, a law firm that is assisting in the draft legislation, the proposal is a “step in the right direction” that should legitimize and clarify rules for ICOs. The draft legislation was entered by UK MEP Ashley Fox. In discussing ICOs, at least one MEP sees merit in creating a third category beyond securities and commodities (find new definitions).

John Salmon, Hogan Lovells Technology Partner, stated;

“Having the certainty, but also having that legitimisation, I very much welcome having a European-wide proposal. I think it would be incredibly helpful to see that: it gives people the certainty to know … but we need to be clear whether this is a utility token or a transferable security, or how the regulatory regime comes within that. But I think it makes perfect sense because an ICO is another form of crowdfunding. It is different, but it is a form of crowdfunding.”

Continue to the full article --> here


NCFA Jan 2018 resize - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin OfferingsThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Latest news - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin OfferingsFF Logo 400 v3 - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offeringscommunity social impact - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings

Gowling WLG | Michael Garellek | Mar 19, 2021 Regulatory framework What national authorities regulate the provision of financial products and services? Financial institutions The Department of Finance is the government body responsible for federally regulated financial institutions (FRFIs), including banks, trust and loan companies, insurance companies and credit unions. The Department of Finance is principally responsible for proposing changes to legislation and adopting new regulation governing FRFIs. The Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC) are two key regulatory authorities supervising FRFIs. Generally, OSFI is responsible for prudential regulation and establishing guidelines for capital, reporting and business practices, and FCAC is responsible for consumer protection. See:  Big Changes In Financial Regulation: Dialogue With The OSC 2020 In addition to OSFI and FCAC, each province has regulatory authorities that oversee financial institutions outside of the exclusive jurisdiction of the federal government. These include, among others, the Financial Services Commission of Ontario, the Autorité des marchés financiers (AMF) in Quebec, and the British Columbia Financial Institutions Commission. Recently, amendments to the Bank Act were enacted allowing a credit union incorporated provincially to assume federal jurisdiction provided it amalgamates with an existing federal ...
Read More
Financial services regulation in Canada - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
CrowdfundInsider | JD Alois | Apr 14, 2021 SEC Commissioner Hester Peirce has posted an update to her Token Safe Habor proposal. Back in February 2020, Commissioner Peirce revealed her proposal in an effort to create a regulatory environment that supported Fintech innovation while acknowledging the unique characteristics of digital assets. Since the emergence of crypto-assets, the SEC has struggled to manage the new asset class that may have characteristics of a security while also having a utility quality. In the end, the Commission has defaulted to the decades-old Howey Test to regulate crypto and, at times, regulation by enforcement. Commissioner Peirce’s first version of a safe harbor for token offerings sought to accommodate the ability for a digital asset to morph into a utility over a period of time while creators worked on the network that used a native token. See:  Hester Peirce on personal liberty, crypto regs and retail investor particiation From the beginning, Commissioner Peirce has stated the safe harbor is a work in process, accepting feedback from industry insiders. In recent conversations, the Commissioner hinted that an update would be forthcoming and yesterday she posted version 2.0 on Github. The Commissioner has invited further comments and ...
Read More
Commissioner Peirce candid shot - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
CrowdfundInsider | JD Alois | Apr 19, 2021 Several months ago, FinCEN submitted for publication in the Federal Register its Notice of Proposed Rulemaking (NPRM) regarding certain transactions that involve virtual currency or digital assets. FinCEN or the Financial Crimes Enforcement Network is a bureau of the US Department of the Treasury that seeks to combat domestic and international money laundering, terrorist financing, and other illicit activity. The proposal in question has received criticism from the digital asset industry due to the extensive reporting requirements in the potential rule. FinCEN came under criticism when it appeared to rush through the NPRM in the midst of the holidays and during the transition to the Biden administration and subsequently, an extension was added for the comment period regarding “digital assets with legal tender status” (LTDA) or involving “convertible virtual currency” (CVC). David R. Burton, Senior Fellow in Economic Policy at The Heritage Foundation – and expert on legislation and securities law, submitted a comment letter addressing the proposed rules slamming the NPRM. Burton, in his comment letter, said that combatting the financing of terrorism and other illicit activity is a very important goal. But the proposal by FinCEN fails in its objective as ...
Read More
Wrong way sign - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Association of Corporate Treasurers | March 2021 Faster payments initiatives are a key breakthrough for treasurers and financial markets. Tony Carfang asks what comes next and how we measure success Over the past several decades, payments have become faster, cheaper, more secure and more reliable. Cheques used to take days in the mail and then days to clear once deposited. International funds transfers would pass through several banks, each taking a ‘lifting’ fee as the funds slowly passed from originator to recipient. Fortunately, those days are over. Transaction settlement times have declined from weeks (the cheque is in the mail) to days to minutes. Only a couple of years ago, same-day settlement was hailed as a breakthrough. Now, the target is 10 seconds or less and many closed networks are achieving that fairly consistently, something that is now being called ‘immediate payments’. See:  Clubhouse launches payments for creators Central banks, commercial banks and payment networks are racing to make payments even speedier. This is all very good, since timing delays in payments and their accompanying information create risk and uncertainty as well as wreaking havoc with cash forecasts and liquidity cushions. In the US, the Federal Reserve launched its Faster Payments ...
Read More
faster payments - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Forbes | Jonathan Ponciano | Apr 14, 2021 The Senate on Wednesday confirmed President Joe Biden's nomination of Gary Gensler, a former Goldman Sachs banker and a forceful commodities regulator under former President Barack Obama, to head up the Securities and Exchange Commission, setting the stage for widespread reform as the agency takes on unprecedented stock-market volatility and booming institutional adoption in the nascent cryptocurrency space. Key Facts The Senate confirmed Gensler's appointment Wednesday afternoon in a vote of 53 to 45, placing the 63-year-old academic and former investment banker atop the agency charged with maintaining fair, orderly and efficient markets. Gensler, who's promised to increase transparency and reduce risk in the market, succeeds former SEC Chair Jay Clayton, an attorney tapped by former President Donald Trump to undo financial regulations that "stifled investment in American companies." The confirmation comes more than a month after the Senate Banking Committee voted 14 to 10 to advance Gensler's nomination for two terms ending on June 5, 2026. See:  Will Gary Gensler at SEC be Good for Crypto? The Senate only voted to confirm Gensler for the remainder of the term expiring June 5, so it will need to hold another vote for ...
Read More
SEC securities exchange commission - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Nova Credit blog | Apr 1, 2021 SAN FRANCISCO, Calif., Apr. 1, 2020 - Nova Credit, a global credit bureau enabling immigrants access to credit, has launched a new direct-to-consumer dating service. The app, named “Score!”, matches any U.S. immigrant with a local American, based on analysis of their credit scores and other behavioral insights. It is available on both iOS and Android, and has an early user rating of 4.1 stars. See Score! in action. Recent data released from the Advanced Population Research Institute of Louisville’s Foreign-born Overseas Observations: Longitudinal Study shows that non-U.S. born residents are not only remaining longer in the U.S. (from an average of 6 years in 2000 to 11 years in 2020), but also more likely to marry a local (from 4% in the 1980s to a peak of 12% last year). Nova Credit Head of Product Melanie Aliperti offered, “as we’ve run deeper user research, we’ve found that the quest for love is becoming a more significant theme and requested feature - particularly as newcomers seek deeper cultural integration and mingling.” The feedback from early beta users has been promising. Priyanka from India described her experience, “Bumble, Raya, Tinder -- I’ve been on ...
Read More
Nova credit - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Sifted | Nicolas Colin | Apr 14, 2021 The Greensill debacle shows that startups have a lot to learn when it comes to winning friends and influencing people. Startups are getting stuck into some highly-regulated industries — and they need to start taking those regulations seriously. Long gone are the days when founders could “move fast and break things”, to echo Mark Zuckerberg’s famous words. Now startups are handling people’s money; they’re responsible for children’s education; and some of them are even taking our lives in their (healthtech) hands. But staying on the right side of regulation is not easy. Most rules were designed a long time ago, well before the internet came about and made it possible to solve old problems with new solutions. Many things that are now possible don’t exactly fit in the old regulatory boxes that we inherit from the past — whether it’s rules that relate to taxi medallions or the 1835 Highways Act that effectively prohibits anyone in the UK from riding an electric scooter on the road. For some startups to take off while strictly complying with existing regulations in sectors such as transportation, financial services or healthcare, the sequence would have to ...
Read More
Startups and lobbying - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
MarketWatch | Mark DeCambre | Apr 14, 2021 Coinbase is the talk of Wall Street on Wednesday, as the largest crypto platform in the U.S. gears up for its public debut on a traditional exchange, arriving via a direct listing rather than a more traditional initial public offering. The arrival on the public markets of Coinbase COIN, 34.38% is a big moment in the world of cryptocurrencies. The company was created just over a decade ago with the genesis of bitcoin BTCUSD, -2.43% and today stands at what many in the industry have described as a tipping point. There are few ways to secure direct ownership of crypto currencies, outside of buying them directly, a service that Coinbase provides for a fee, and which investors appear willing to pay for. Coinbase, whose users primarily deal in bitcoin and ethereum, reported last week that its revenue soared 847% in the first quarter to $1.8 billion, and that it now has 56 million verified users. See:  ETF investors say Coinbase listing will cause explosion in crypto investing Leeor Shimron, an analyst at FundStrat Global Advisors, described the Coinbase listing as seminal. “Coinbase’s direct listing is a watershed moment for the crypto industry.” ...
Read More
Coinbase direct listing - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Yahoo Finance | Release | April 13, 2021 LONDON, April 13, 2021 /CNW/ - Emerging technology research company D-Core released its latest analysis reviewing the future of the cryptocurrency landscape, calling for CoinPayments to remain the leading crypto payments processor in 2026. D-Core's report surveyed 161 experts, asking them: "Which crypto payment processor will definitely be operating in five years time?" Of those surveyed, 37% picked CoinPayments, giving it the top spot. The other crypto payment processors included in the report were Bitpay (29%), BTCpay (19%), SpicePay (13%), CoinGate (1%), among others. "It is great to be recognized as a top crypto payment processor among experts in the industry," noted Jason Butcher, CEO of CoinPayments. "Since 2013, our aim has always been to fuel crypto adoption and the most effective way to give digital assets their rightful place as mediums of exchange is by enabling businesses and consumers to use them for everyday purchases." See:  Jason Butcher, CEO Coinpayments speak at the 7th Fintech & Financing conference: FFCON21 Breaking Barriers May 11-13 The report's timely release comes as notable companies like Paypal and Tesla announce that they will be facilitating crypto payments for customers. Crypto adoption is steadily on the ...
Read More
crypto payment processor research - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings
Montreal in Tech | Joseph Czikk  | Apr 2, 2021 Sam Presti made a risky bet in the summer of 2018. The general manager of the NBA’s Oklahoma City Thunder traded for star player Paul George. There was just one problem. George had one year left on his contract before he was free to sign with whomever he wanted, and he made it clear he wanted to return home to Los Angeles to play for the Lakers. Presti made a bet on an asset that would probably skip town in a year’s time. In doing so, he risked his job in Oklahoma City, a small market team that doesn’t often lure high-end free agent players. See:  4 Ways the Startup Landscape Will Shift in 2021 “Scared money don’t make none,” Presti famously remarked at the press conference, referencing a lyric from Midnight, by A Tribe Called Quest. Presti’s big bet paid off. George liked it so much in the midwest that he spurned the Lakers and signed on for another year with the Thunder, shocking many. Montreal’s next tech unicorn? Like Presti’s gamble, risk-taking is sometimes necessary in life. And for so long it felt like Canadian tech markets like ...
Read More
element AI reception - European Parliament Draft Legislation Shows Intent to Enable Crowdfunding Platforms to Host Initial Coin Offerings