There is a high probability that new rules related to cryptocurrency and blockchain-based coins will be created in some months, stated an EU official on 26th February 2018.
An official has suggested that blockchain leaders should be monitored in their activities. However, this measure will depend a lot on the market’s changes.
The Vice President of European Commission– Valdis Dombrovskis stated for local media that “This depends very much on the facts and circumstances around specific crypto-tokens. Based on the assessment of risks and opportunities and the suitability of the existing regulatory framework for these instruments, the Commission will determine if regulatory action at EU level is required.”
About ICO– Initial Coin Offering, Dombrovskis mentioned that “[ICOs] have become a way for innovative firms in this field to raise substantial amounts of funding. This is an opportunity, but there are also problems that expose investors to substantial risk, such as the lack of transparency regarding the identity of the issuers and underlying business plans.”
The Vice President added that there is a need of collaboration together with the members of G20 nations, so that all the risks related to the use of the blockchain technology and cryptocurrency will be clearly exposed.
The European Commission has organized a Roundtable on Crypto
The European Commission has realized a Roundtable on cryptocurrencies on 26th February 2018. According to Europa.eu, “The aim of this roundtable was first and foremost to feed into our upcoming Action Plan on FinTech, and the EU’s position for a possible discussion at G20 level”.
According to the European Commission, the roundtable’s topics where the following ones:
- the implications of crypto-currencies for financial markets,
- the risks and the opportunities associated with their use,
- and the recent development of Initial Coin Offerings.
The Roundtable’s Conclusions
The results concluded at the European Commission’s Roundtable refers to the fact that the blockchain technology is a great opportunity for the economy and Europe should get involved in and develop this system.
Related to cryptocurrency, the European Commission is still worried about all the investments made in crypto assets, because of their high volatility and risks for the social environment. They do not consider cryptocurrency as a currency.
The third conclusion stated that users should be informed about all the negative consequences that may appear and not to trust in all digital assets.
Initial Coin Offerings is seen as an important accelerator for the companies’ financial systems of funding. Besides the advantages, the European Commission found some problems and risks that should be avoided or solved.
European Commission found that crypto assets are too risky and should be somehow controlled. The most dangerous consequences are being: money laundering and the financing of illicit activities. According to the Europa.eu, the European Commission will take the further measures taking into account “the circumstances around specific crypto-tokens”.