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Belgian think tank calls on EU to regulate crypto exchanges and ICOs

Belgian think tank is arguing that the EU should create a single standard for cryptocurrency rules in a report sent to finance ministers within the economic bloc.

Bruegel, based in Brussels, believes that the EU needs “common rules” on cryptocurrencies, as well as how tokens are distributed and traded, Reuters reported on September 5.

The report comes in advance of an “informal meeting of economic and financial affairs ministers” that will take place in Austria from September 7-8. The report is not yet publicly available.

The report urges the regulation of cryptocurrency exchanges and Initial Coin Offerings (ICOs) at the E.U. level in order to manage associated risks and harness the potential of blockchain technology.

At the same time, the report notes that bitcoin’s decentralized nature makes regulating the cryptocurrency itself “impossible.”

As such, it emphasized that any regulations would have to apply to exchanges or other related companies. It also referenced China’s crackdown on cryptominers, noting that mining farms can be banned as well.

On September 4, members of the European Parliament held a meeting on to discuss a proposal that, if approved, would create new regulations on initial coin offerings (ICOs) held within the economic bloc.

The proposal was written by Ashley Fox, a Member of the European Parliament (MEP). Fox called for an 8 million euro cap on token sale proceeds as well as KYC/AML requirements.