ECB Wants to Regulate Cryptocurrencies in the EU Before an Agreement on Global Crypto Regulations

February 27, 2018

It seems that the European Central Bank (ECB) can’t wait for the G-20 Summit that will discuss global regulations around cryptocurrencies. The European Union warned that if the risks associated with the rise of Bitcoin and other cryptocurrencies are not addressed at the global stage, it will definitely regulate cryptocurrencies.

European Union to Regulate Cryptocurrencies

From 17 March to 18 March 2018, Buenos Aires will host the 2nd Meeting of Finance and Central Bank Deputies from the most important countries in the world, including Japan, United States, and the European Central Bank. Clearly, there is an intention to regulate cryptocurrencies and the market. But the EU seems a little bit nervous about it.

After hosting a roundtable discussion in Brussels, EU financial chief, Valdis Dombrovskis, commented:

“We do not exclude the possibility to move ahead by regulating cryptocurrencies at the EU level if we see, for example, risks emerging but no clear international response emerging. This is a global phenomenon and it is important there is an international follow-up at the global level.”

The Finance Ministers of France, Germany, Japan, Netherlands and many other countries have asked for cryptocurrency market regulations. The intention is to combat money laundering and criminal activities around cryptocurrencies.

But the data talks by itself. According to reports from Japan, less than 1% of the nation’s money laundering were related to cryptocurrencies.

New Rules for Crypto Assets

At Monday’s event, Mr Dombrovskis suggested that are searching different ways to regulate crypto assets.

“This depends very much on the facts and circumstances around specific crypto-tokens. Based on the assessment of risks and opportunities and the suitability of the existing regulatory framework for these instruments, the Commission will determine if regulatory action at EU level is required.”

For Dombrovskis it is important to regulate a market that is full of speculation and lacks from transparency. At the same time, policymakers are worried about the amount of jobs that can be lost by implementing hard regulations in the sector. At the moment, blockchain technology is expanding and an important amount of enterprises are starting to explore the solutions that this technology allows.

Images: EU Observer and European Commission

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