The ECB Wants to Introduce Legal Restrictions for ICOs06.10.2017

The European Central Bank (ECB) is discussing the possibility of introducing specific legal restrictions for initial coin offerings (ICO), said Ewald Nowotny, ECB board member.

In an interview with the weekly Austrian Trend magazine, Nowotny, who is also the head of the Central Bank of Austria, said he considers the hype around Bitcoin and other cryptocurrencies "dangerous and very doubtful."

Last month, the People's Bank of China (PBOC) recognized ICOs as illegal and demanded the cessation of all such operations in the country. A little later, a ban on ICOs was introduced in South Korea.

According to Nowotny, in China, the problem was that Bitcoins were used as a tool for the withdrawal of capital outside the country, and also to circumvent regulatory restrictions.

In the euro area, the situation is not that serious, according to him.

In the opinion of Oleg Yakushev, expert of the company "Zerich Capital Management," restrictive measures for the ICO, introduced in the PRC and South Korea, should not be considered as a final decision.

"These actions are designed to give regulators time to develop game rules that suit all parties. Eliminating gray zones in the legislation will make it possible to give cryptocurrencies a clearly defined legal status, introduce them into economic circulation, and protect the interests of potential investors in disputable cases - for example, amid problems with the implementation of a project the funds for which were collected with the help of an ICO," he said.

Commenting on the ECB's plans in the sphere of monetary policy, Nowotny noted that the program of the Central Bank's redemption of bonds should not end suddenly.

He believes that the Central Bank should gradually reduce the amount of stimulates programs from the beginning of 2018.