The EU takes another look at cryptocurrency regulation
The European Union’s member states have been analyzing Blockchain and cryptocurrencies for some time now, as stated by the Financial Ministers. Cryptocurrencies pose a regulatory challenge to regulators as this technology goes beyond what the current financial system can offer. Regulators are planning on having another discussion on whether regulations should be tightened around the industry. The European Financial Ministers plan on gaining more insight into the practices of digital currencies like bitcoin because of the lack of transparency, money laundering, tax evasion, the financing of terrorism and its use of illicit activities.
The discussion will be taking place in Vienna on the 7th of September 2018, this information was provided by Bloomberg. The report said that European regulators initially saw cryptocurrencies as a means of raising funds via an Initial Coin Offering (ICO), this lead to interest on the possibility of modernizing the current economic system. Which means that there is a positive outlook on the technology from EU regulators. Global regulators have been delving deeper into the applications of the blockchain and cryptocurrencies, as it is a relatively young market. Whether there will be any type of harsh decisions still remains to be seen.
Regulations around the globe may have conflicting approaches to regulation
The Chinese regulators have been maintaining their bans on cryptocurrencies, while other countries have been working together with regulators and governments. Cryptolinenews will be keeping up to date with the event and the results of this meeting. EU regulators have taken a “do-no-ham” approach against the industry, this will allow for fast growth and innovation. US regulators have been taking a more wait and see approach but have not been very clear to investors. The Securities Exchange Commission (SEC) have been indecisive on about regulations but have rejected countless ETF’s applications in the past few months, apparently because of the possibility of market manipulation and volatility.
The SEC counterpart Commodities and Futures Trading Commission CFTC stated that “They have been advocating for cryptocurrency markets for some time now, the technology and investors deserve respect and regulations should be in favor of benefiting the markets and investors”
As Cryptocurrency markets around the world continue to grow and adapt to this new kind of financial innovation, based on a technology. It is presumed that regulators worldwide will start to synchronize their efforts to heighten the innovations coming from the industry. While at the same time protecting investors capital funds from fraud and market manipulation.
What is your opinion on the market performance and the EU regulator stands toward cryptocurrencies? Please leave a comment down below.