Blockchain might come to EU soon

European Union friendly towards Blockchain - suspicious of ICO's

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The European Union is considering the implementation of a European wide Blockchain infrastructure. Similar to what is going on in Estonia and their adoption of the Blockchain.

EU Blockchain research efforts.

Researchers have been granted 250,000 Euros to carry out studies on the matter of a legally compliant transactional and data ecosystem, built on the Blockchain.

The goal is to figure out how Blockchain tech might aid national authorities in providing services to the public. Increased efficiency, reduced costs, and transparency would greatly benefit EU countries. Perhaps western societies would follow suit.

ESMA warns investors about scam Blockchain ICO’s

 At the same time, however, the ESMA, European Securities and Markets Authorities highlighted the risks of Initial Coin offerings (ICO’s) in two statements.

The ESMA wants inexperienced investors to understand that ICO’s are high-risk ventures. Many of which turn out to be scams and held with the sole purpose of tricking investors out of their assets. While completely failing to deliver on proposed promises.  Essentially, the ESMA considers ICO’s to be financial tools and would be pretty happy if they complied with the following:

  • Prospectus Directive.
  • Markets in Financial Instruments Directive (MiFID).
  • Alternative Investment Fund Managers Directive (AIFMD).
  • Fourth Anti-Money Laundering Directive.

ICO’s are kind of dancing on the thin white line between violating regulated investment practices. Including established anti-money laundering laws.

Additionally, the Japanese government released a statement warning investors of the risks related to ICO investments. German authorities also expressed care for their citizen’s assets, reminding investors that they need to pay special attention to where they put their money. Especially in Blockchain projects.

“The systemic vulnerability of ICOs to fraud, money laundering and terrorist financing increases the risk of investors losing the sums invested, all the more so due to the possibility of authorities taking necessary measures against operators or other persons or enterprises that are involved in such illegal dealings “. – BaFin

Investors need to watch themselves.

I completely understand how investors carelessly throw their money at ICO’s only to suffer later. A quick glance at the massive gains that one can get from investing in the right project can prove to be quite phenomenal. However, investors need to do their due diligence and understand that they are responsible for their own money and that nobody is going to babysit them.

Investors need to read upon on and understand the ICO’s that they are considering investing in.



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