Cryptocurrency has become established but still, require monitoring. Vice-President of European Commission, Vladis Dombrovskis voiced his opinion at the ECOFIN press conference in Vienna recently.
Why Cryptocurrency Has Become Established And Plans Of European Commission
The vice president of European Commission, Valdis Dombrovskis, the body responsible for proposing legislation for E.U., talked about the present situation of Cryptocurrency in a press conference last Friday.
Vladis noted that the commission sees the need for further strengthening the resilience of the financial system by implementing the post-crisis financial regulation reform and an increase of non-loan performing loan.
So also, the member states have a good exchange of views on cryptocurrency assets which shows that cryptocurrency market has come to stay – established in the European system despite the turbulence that has trailed the nascent technology.
This has been one of the major factors giving fluidity to the process of final regulatory assessment for the governance of crypto assets in European Union this year.
Vladis also stated the importance of the initial coin offering process to the growth of startups, as it aided with over 6 billion dollars in funding last year, with more significant figures expected this year. However, the commission still envisages working on the transparency, risk for investment protection, potential fraud, or hacking. This requires cooperative monitoring of the member states with international partners at the financial stability board or the G20.
Another challenge noted by Vladis is how to categorized and classify crypto assets and also how to apply the existing financial rule of the European Union to it or the need for new regulations to be made. On this Valdis stated that the commission is already working with European Supervisory Authorities on the regulatory mapping of crypto assets to support the categorization and classification of cryptocurrency assets. This is expected to aid a conclusive end this year, as members states already share the need for the mapping.
Notably, before there’s a final regulation on cryptocurrency by the EU, the Commission has made giant stride on anti-money laundering and anti-terrorism finance legislation to crypto-asset exchanges and custodian wallet providers.
The Need For Regulatory Framework For Cryptocurrencies
The interest shown by the European Union in the regulatory framework for cryptocurrency in the region is an expression of the level of adoption that has trailed cryptocurrency in the region.
This is aiding the necessary growth and development needed by the cryptocurrency community. The United States SEC has rejected ten bitcoin ETF proposals because of the inadequacies of a regulatory framework. A similar measure by countries would aid the drastic growth of cryptocurrencies globally.