June 18, 2024

The EU will develop new rules for regulating cryptocurrencies

The EU will develop new rules for regulating cryptocurrencies

The hype surrounding the Libra cryptocurrency project has led the European Union to set out to create new frameworksregulation for the entire cryptocurrency industry as a whole.

A proposal to develop a common regulation for all cryptocurrencies was made by Valdis Dombrovskis, Vice President of the European Commission and European Commissioner for Euro and Social Dialogue.

“Europe needs to develop a common approach to cryptocurrency assets such as Libra. I intend to propose new legislative measures in this matter ”, — he said.

As the main directions of the futureRegulatory official noted several main areas: unfair competition, threats to financial stability and cybersecurity. He did not disclose more detailed details, but when approaching the regulation of cryptocurrencies, measures to combat money laundering and the financing of terrorism will not be without measures.

The issue of unfair competition arisesfunny situation. Previously, the European Commission had already investigated the possible lack of competition in the Facebook cryptocurrency project due to its scale. The adequacy of this approach raises questions: if no one can compete with Libra — This is not Facebook's problem. Most likely, the European Union is covering up its fears about the uncompetitiveness of the Euro with this fictitious concern for smaller players.

Considering that we are talking about the whole of Europe,The consequences of large-scale regulation could affect the entire industry, but how — depends on the approach to control of digital currencies. Now most projects are simply forced to survive after the collapse of two years ago, and increased control over them could be the final blow. However, for now all these conversations remain at the level of theory, and years may pass before real measures are taken.