Vice-President of the European Commission: “The EU is developing regulation for cryptocurrencies”

According to the Vice-President of the European Commission, the European Union is developing cryptocurrency regulation,which will include stricter requirements for global stablecoins.

Vice-President of the European Commission andEuropean Commissioner for Financial Stability, Financial Services and the Capital Markets Union Valdis Dombrovskis said Europe must seize the opportunity to take a leading role in regulating digital finance.

“This is a good chance for Europe to strengthen itsinternational positions and become the leading creator of regulatory standards, as European companies are leaders in developing new technologies in the field of digital finance, ”he said during a speech at the Digital Finance Outreach 2020 conference.

Dombrovskis said that primarily the EUfocus on cryptocurrencies. Although some crypto assets, such as stock tokens, are fairly well protected by European law, many of them, especially stablecoins, remain completely unregulated.

“The lack of legal certainty is often called the main obstacle to the development of a reliable crypto asset market in the EU,” he said.

Some EU members have taken regulationhands, which damages the integration of the market and impedes the work of companies. According to Dombrovskis, the new cryptocurrency regulation regime will cover not only unregulated digital assets, but also consolidate and unify existing standards in EU member states.

Dombrovskis did not disclose detailsdeveloping regulatory regime, but emphasized that it will support and stimulate innovation. According to him, the pilot scheme will allow regulators to provide opportunities for the development of new experimental solutions, the work of which will be monitored.

He also noted that the EU is particularly interested inthe introduction of stricter rules regarding any project that is considered a “global stablecoin”. According to Dombrovskis, global stablecoins, such as Libra, can “cause additional problems,” that is, disrupt financial and currency stability.

“In general, our approach will be balanced and related torisk level. This means that less stringent rules will be adopted for the least risky projects. In the case of global stablecoins, their potentially systemic role means that our rules will be more stringent in relation to them, ”concluded Dombrovskis.

Let us remember that at the end of last yearThe European Union has opposed the launch of stablecoins until regulation is developed, and previously the Association of European Financial Markets (AFME) called on the EU to develop common regulation for the cryptocurrency industry.

</p></p>