Cryptocurrency regulation may be on the cards if the EU gets its way. The European Union may ultimately regulate cryptocurrencies if risks are not tackled on a global basis. This was stated on Monday by Valdis Dombrovskis, the head of EU financial services.
Many people have been able to take advantage of the wild swings in the values of Bitcoin, Ethereum and other cryptocurrencies over the past year. However, just as many have lost heavily as their investments have crashed. This is happening globally right now. It is the time that some form of control was exercised on a global level according to Dombrovskis.
EU May Regulate Cryptocurrencies
His statement inferred that the EU may take steps to regulate cryptocurrencies if risks are noted that are not being responded to at an international level. He made this statement after hosting a roundtable of the Financial Stability Board, the European Central Bank, and some industry bodies. The issue will be monitored and the EU will come to decision on how to take this issue forward at a later date possible in 2019.
Central Bank and G20 Finance Ministers to Discuss the Issue.
There is a meeting due in Buenos Aires in March between central bankers and G20 finance ministers. Cryptocurrency regulation will be one of the matters due for discussion at that meeting. This issue was identified by France and Germany earlier this month. The two countries counted on the opportunities that cryptocurrencies offer, and also the substantial risks to investors they may present. Financial crime is another factor involved they stated.
However, in spite of existing or potential risks, the effect of cryptocurrencies on the world economy as a whole is very small. For that reason, there appears to be no significant desire by G20 countries to regulate them at present. One issue is the potential loss to certain regions in the event of stiff regulation on the blockchain technology. All cryptocurrencies operate using blockchain technology.
Cryptocurrency Regulation May be Applied by EU
Some members of the European Parliament feel that the EU should tackle the issue of cryptocurrency regulation unilaterally. They feel it wrong to wait for international cryptocurrency regulation to eventually tackle the issue. That is because this would likely take several years to get passed and then several more to take effect. Time will tell as usual, but it seems as if the EU will take its own steps to regulate the use of cryptocurrencies within the EU.
