Could We See EU-Wide Cryptocurrency Regulation in the Future?
- The EU is preparing to discuss cryptocurrency regulation at the G20 meeting in March.
The European Union is prepared to regulate cryptocurrency at the federal level if other solutions are not found, according to Reuters.
The comments were made at a roundtable discussion hosted by Valdis Dombrovskis, Vice-President of the European Commission and current European Commissioner for the Euro and Social Dialogue. It was attended by industry bodies including the European Central Bank and the Financial Stability Board, which is responsible for coordinating regulation for the G20.
The discussion covered a number of topics - first, that Europe must adapt to Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology in order to remain competitive. Second, that investors must be warned about the dangers of cryptocurrency speculation, which has become rampant. Third, that initial coin offerings bring both opportunity and danger to the market.
It was also identified that before cryptocurrency can be regulated, the extent to which it already is must be confirmed, that is, "under what circumstances crypto-currencies and related services are covered by existing regulation."
Dombrovskis noted during the discussion that the EU is responsible for a relatively modest slice of the cryptocurrency economy, and so it is essential that standards are set internationally.
The discussion was a prelude to the next G20 meeting, to be held in Argentina in March. The finance ministers of both Germany and France (Peter Altmaier and Bruno Le Maire respectively) have called for the subject to be discussed at that meeting. Le Maire told reporters last Thursday that "a joint Franco-German analysis of the risks linked to bitcoin [and] regulation proposals ... will be submitted as a joint proposal to our G20 counterparts at the G20 summit in Argentina in March.”
Altmaier agreed: “We have a responsibility towards our citizens to explain and reduce the risks.”
As reported by The Guardian, Dombrovskis told reporters after the meeting: “This is a global phenomenon and it’s important there is an international follow-up at the global level. We do not exclude the possibility to move ahead at the EU level if we see, for example, risks emerging but no clear international response emerging.”
Meanwhile, the European Central Bank announced at the beginning of the month that it can beat cryptocurrency at its own game with its own new payment system, TIPS ('TARGET instant payment settlement'). It claims that the system will offer instant, free transactions by allowing participating banks to "set aside part of their liquidity on a dedicated account opened with their central bank, from which instant Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term could be settled around the clock."
The system has already been approved, and the planned launched date is November 2018.
The European Union is prepared to regulate cryptocurrency at the federal level if other solutions are not found, according to Reuters.
The comments were made at a roundtable discussion hosted by Valdis Dombrovskis, Vice-President of the European Commission and current European Commissioner for the Euro and Social Dialogue. It was attended by industry bodies including the European Central Bank and the Financial Stability Board, which is responsible for coordinating regulation for the G20.
The discussion covered a number of topics - first, that Europe must adapt to Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology in order to remain competitive. Second, that investors must be warned about the dangers of cryptocurrency speculation, which has become rampant. Third, that initial coin offerings bring both opportunity and danger to the market.
It was also identified that before cryptocurrency can be regulated, the extent to which it already is must be confirmed, that is, "under what circumstances crypto-currencies and related services are covered by existing regulation."
Dombrovskis noted during the discussion that the EU is responsible for a relatively modest slice of the cryptocurrency economy, and so it is essential that standards are set internationally.
The discussion was a prelude to the next G20 meeting, to be held in Argentina in March. The finance ministers of both Germany and France (Peter Altmaier and Bruno Le Maire respectively) have called for the subject to be discussed at that meeting. Le Maire told reporters last Thursday that "a joint Franco-German analysis of the risks linked to bitcoin [and] regulation proposals ... will be submitted as a joint proposal to our G20 counterparts at the G20 summit in Argentina in March.”
Altmaier agreed: “We have a responsibility towards our citizens to explain and reduce the risks.”
As reported by The Guardian, Dombrovskis told reporters after the meeting: “This is a global phenomenon and it’s important there is an international follow-up at the global level. We do not exclude the possibility to move ahead at the EU level if we see, for example, risks emerging but no clear international response emerging.”
Meanwhile, the European Central Bank announced at the beginning of the month that it can beat cryptocurrency at its own game with its own new payment system, TIPS ('TARGET instant payment settlement'). It claims that the system will offer instant, free transactions by allowing participating banks to "set aside part of their liquidity on a dedicated account opened with their central bank, from which instant Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term could be settled around the clock."
The system has already been approved, and the planned launched date is November 2018.