Government in Lithuania Releases New ICO Guidelines with the Goal to Create Transparency
The government in Lithuania has recently unveiled a new fully loaded report on the guidelines that must be followed by new ICOs. The document was published on June 8th, and officials are heralding the new move as a positive step towards transparency and certainty across the country.
In introductory remarks:
“Lithuania already has an exceptional regulatory advantage. We are one of the first ones in Europe who prepared comprehensive Guidelines on legal framework for ICO projects covering regulatory as well as taxation and accounting,”
Then continued on with the following:
“We acknowledge that the brave new crypto economy world is here to stay, this is why we encourage and invite its participants to innovate and create in Lithuania.”
The report covers a large variety of different regulations and aspects like those on taxes, accounting and a lot of on AML or Anti-Money Laundering practices. There are also guidelines singling out an initial coin offerings token’s “granting profits or governance rights” as the major aspect to be used to determine whether or not an ICO constitutes a breach in security or is safe.
The country’s new approach is meant to keep the process of releasing ICOs safe and more secure, ultimately filling in any gaps set by faulty legislative understanding for consumers and businesses alike. Especially those businesses who are getting involved in ICO coin handling and releasing.
The introduction also contained the statement:
“These Guidelines are another step towards more certainty and transparency in the regulatory, taxation, accounting and other requirements as well as better cooperation between different stakeholders,”
The major concern is whether or not cryptocurrency coins should rightfully be labeled or classified as securities. Where as they are currently the focus of a major audit being held by the United States and Canadian regulations committees, looking to keep the industry more legitimate for new investors and old also.
In the United States, the SEC better known as the Securities and Exchange Commission has previously admitted to being somewhat underwhelmed by the total lack and emptiness of cryptocurrencies in regard to them registering as operators who carry securities.