The Organisation for Economic Cooperation and Development stated that regulators should facilitate the development of ICOs.
The Organisation for Economic Cooperation and Development (OECD) has stated that global regulators should work together to facilitate the development of initial coin offerings (ICOs), according to a report released Jan. 15.
The document calls for regulatory clarity and a supervisory framework for ICOs, defining such moves as “a stepping stone to their safer use for financing purposes.” The report also underlines the importance of standardized disclosure requirements, enhanced investor protection Anti-Money Laundering (AML) and Counter Terrorist Financing (CFT) measures.
A separate document dedicated to the highlights of the report states:
“A delicate balance will need to be achieved in the development or application of regulatory and supervisory requirements which do not deprive the ICO mechanism of its speed and cost benefits, particularly when it comes to smaller size offerings.”
The same document also states that given the global nature of ICOs, there is a need for international cooperation to prevent regulatory arbitrage. According to the text, such collaboration will “allow ICOs to deliver their potential for the financing of blockchain-based SMEs [small and medium enterprises], while adequately protecting investors.”
The OECD is an organization that describes itself as an “economic counterpart to NATO,” with a mission to “help governments achieve sustainable economic growth and employment and rising standards of living.”
As Cointelegraph reported in August last year, the OECD then announced the “first major international conference” dedicated to blockchain. Organizers planned to focus on the use of blockchain tech in government activities and public initiatives, as well as regulatory aspects.
A Cointelegraph analysis from September of last year describes how OECD has been cautiously enthusiastic about blockchain technology. The organization has on the other hand been reportedly less supportive of blockchain-based currencies — such as Bitcoin (BTC) — that potentially bypass central banks’ authority.
Source: Cointelegraph https://cointelegraph.com/