The European Union will need a more ‘’common approach’’ to regulating the crypto sector according to the finance commissioner Valdis Dombrovski and reportedly they will now focus mostly on this approach if he gets appointed for a second term. In the cryptonews today we read further on this subject.
Dombrovskis is now ready to change tactics and to pursue the creation of a well-defined framework for the crypto regulations within the European Union. During his speech before the European Parliament in Brussels, the finance commissioner highlighted the need for Europe to have a standardized system of crypto governance:
‘’Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this [cryptocurrencies].’’
Since the emergence of the global crypto industry, there have been many stakeholders that bemoaned the lack of attention that the EU had regarding regulations. The European Commission has stated on several occasions that they need a unified crypto regulatory paradigm across the region. Earlier this year, France urged the EU to establish a single regulatory framework based on the French model but some commentators stated that a more common approach across the EU will prevent the emergence of the regulatory arbitrage in the union.
For Dombrovskis, the EU’s crypto regulations have to focus on anti-money laundering policies and to focus more on the protection of the region’s financial stability. He suggested that the EU should launch a tool that will empower the EU to handle better crypto regulations. His changed stance is mainly because of the developing trend within the EU which spurred on by the emergence of Facebook’s crypto interest. Once the libra project got a release, the EU-wide crypto actions increased in intensity.
Dombrovski even noted that the Libra project is a threat to Europe’s financial stability as we read in the previous Libra news. The EU finance commissioner fears that Facebook’s massive user base will have damaging implications for the economy and the Euro within the region. Some countries including France and Germany have also expressed worries about Libra saying that they will block Facebook’s crypto in Europe in their own countries as well.
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