EU’s Finance Commissioner pledges shared regulations for crypto-assets like Libra.
On Tuesday, the EU’s Finance Commissioner, Valdis Dombrovskis, vowed he would propose new guidelines to govern virtual currencies like Libra, following his reappointment. That is an interesting statement to make in the five years he’s served so far, Dombrovskis hasn’t taken any actions to regulate digital resources, despite a succession of scandals in banks in his home state, Latvia, and other member nations of the European Union.
“Europe needs a frequent strategy on crypto-assets like Libra.
I plan to propose new laws on this. In regulating virtual currencies, the EU needs to handle unfair contest, cybersecurity, and risks to financial stability”
Even though France and Germany have said that Libra could restrict their control within the financial industry, the EU currently doesn’t have specific regulations for cryptocurrencies. This stems from just how little of an effect cryptocurrency trading has on the fiat market, with only a fraction of digital assets being converted to Euros. Libra however, could alter this.
With the EU now pushing the G20 for international actions on cryptocurrencies, Dombrovskis explained that Libra could pose threats to financial stability due to its scale, with millions of consumers in Europe currently spent in the platform in 1 form or another.
Dombrovskis added that the new rules must concentrate on protecting monetary stability and customers, while handling dangers concerning money laundering via cryptocurrencies because of their capacity to cross borders easily. The former Prime Minister of Latvia said that the EU currently had to digitize their systems to fight financial crimes.
During his speech, he also pledged a’sustainable European investment program’ that would launch $1 billion of private and public green investment during the next ten years. Although the majority of the funds for this project is anticipated to come in the private sector, he claimed that the plan would be based on guarantees and funds provided from the European Investment Bank and the European funding.