Cryptocurrency Regulation in Europe
European Banking Institutions Insist On Strict Regulation Of Cryptocurrencies
European Union central banks are demanding from the European Commission that cryptocurrencies receive tight regulation. Even such cryptocurrencies that are tied to the rates of fiat currencies, for example stablecoins, should, according to representatives of banking institutions, have strict rules for their turnover, since, they said, solely such measures can protect both states and consumers.
According to Reuters, the ministries of Germany, the Netherlands, France, Spain, Italy have applied to the executive branch of the European Union with a statement that they prohibit the circulation of such digital assets, or rather, 27 European states restrict the use of such assets, while there is no clear legislation in the field of regulation of these currencies.
Cryptocurrencies Must be Registered
According to representatives of the ministries of the indicated EU states, cryptocurrencies must be registered in the EU, financial stability has not been violated. In the opinion of the finance ministers, the distribution and regulation of the money supply should remain with the states.
Olaf Scholz, the Minister of Finance of Germany, said that no one other than states can have the right to freely circulate and use any financial assets, since without approval this could seriously violate the monetary policy of states.
According to representatives of the European authorities, such an approach to financial assets may not only disrupt the management of monetary policy of each individual state, but also violate the regulation of financial markets, as well as allow money laundering by dishonest businesses and at the same time, no matter how it sounded contradictory to violate the financial confidentiality of the financial life of Europeans.
Facebook attempt to register Libra
This reaction was triggered by Facebook's attempts to register its Libra cryptocurrency with FINMA (the Swiss financial market supervisor), about which the association of companies filed a petition with the relevant state authority. The Association of Companies has so far declined to comment on this request.
So far, the project has been suspended due to such a reaction from the European authorities. According to the authorities, they fear that the unregulated cryptocurrency could be used for both money laundering and terrorist organizations.
Christine Lagarde, in turn, said that they are about to introduce their digital currency - the digital Euro. Christine Lagarde is currently the President of the European Central Bank and said that digital settlements are not new when it comes to interbank transactions.