EU commission’s ideas for regulating cryptocurrencies offer good opportunities for values like bitcoin, says digital association bitkom. These were able to gain significant momentum with the help of the draft from the brussels authorities, the association reported.
"The eu is harmonizing the existing regulatory patchwork in cryptocurrencies and can thus take a global lead," said the association’s blockchain expert patrick hansen.
This thursday, the EU commission plans to present a proposal for regulating cryptocurrencies. According to reports, the authority wants to create, among other things, uniform rules for cryptocurrencies such as bitcoin. Stricter conditions are to be imposed on digital currencies – so-called stablecoins – such as the facebook project libra. For this purpose, supervision is to be transferred from the national to the european level. The commission is also planning a so-called pilot regime to enable a system of distributed ledger technology. This will consume much less energy than, say, "surfing" bitcoins.
Bitkom expert hansen emphasized that these steps, combined with legal certainty, could "attract numerous crypto companies to europe" – but the prerequisite is a single market in which national licenses are valid throughout the community and can be transferred. "The eu can set global standards with its regulation and build a global locational advantage," hansen said. At the same time, he warned against too high requirements. Otherwise, there is a danger that start-ups, for example, will be excluded.
The european consumer association beuc said cryptocurrencies needed to be regulated across the eu. Therefore, it supports regulations at the european level. In a position paper, the association stresses its concerns. There was a high risk that consumers would easily lose their investment, and there was also the risk of fraud and liability issues. "For any type of cryptoasset, consumer protection rules need to be clarified."
Most recently, germany and four other eu countries had called for strict rules for new digital currencies like libra, and reserved the right to ban them. They called for clear rules, especially with regard to terrorist activities and money laundering. The eu commission had also expressed skepticism in the past.
Libra was announced by the online network facebook for business on the internet and is to be launched at the end of the year after lengthy preparations. The idea is that libra can be bought with established currencies such as the euro or the dollar. The price of classic cryptocurrencies like bitcoin, on the other hand, fluctuates a lot. At the beginning of the year, the bitcoin price was still around 6400 euros. In august it rose at times to more than 10.000 euros, only to drop again to below 9000 euros.