Lithuania became the first EU country to publish official guidance on ICOs.
The guide includes a lot of information, from when cryptocurrencies can be considered a security to how to regulate token sales.
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Official documents published by the Ministry of Finance provide basic frameworks for how to regulate new cryptocurrencies. The guide aims to make the cryptocurrency market more transparent and further grow ICOs.
In a statement, Lithuania’s Minister of Finance Vilius Šapoka said about ICO regulations:
“The ICO market is not yet regulated. ICOs have great potential, but it’s clear that there are risks we need to manage. With our efforts, we want to make Lithuania a main hub for transparent and regular ICOs with a desire to operate in a legal environment.”
In the guideline, tokens that generate profits or have the right to governance are different from tokens that are not. should be regulated in some way. In addition, the article summarizes the criteria to prevent tax evasion and black money. The guide says that income from the sale of cryptocurrencies should be taxed at the standard flat income tax rate of 15%…