- European Union to establish a new group of supervisors
- The draft for the regulation is expected to be 167 pages long and is anticipated to roll out within a few weeks.
- The European Union regulation expected to come out later this September.
The European Union has announced that they will be shortly establishing a new group of supervisors which included important national as well as European authority. The new group of supervisors is expected to oversee the activities of significant digital currencies which also included Facebook’s very own digital asset, Libra.
Europe Must Lead the way for Cryptocurrency Adoption
Libra has always been the spotlight of the controversies. Previously, Libra had received criticism owing to the risk it can pose. However, what the new group does is mainly acknowledge the volatility of the crypto assets which often pose risks. The draft for the regulation is expected to be 167 pages long and is anticipated to roll out within a few weeks. By doing so, the European Union has become the first organization of its kind to regulate cryptocurrencies on a large scale. Valdis Dombrovskis, the Commission vice-president commented that Europe is in a state to lead the crypto regulation in the world.
Stablecoins Must not be Allowed to for Trading Until new Rules are Passed
The meeting of the European Union regarding the regulatory measures on crypto was attended by Germany, France, Italy, Spain and the Netherlands. The finance ministers of all the attending countries declared that stablecoins should be allowed for trade and payments in the 27- member bloc of the European Union until and unless a regulatory framework has been decided for the same. Some central banks and institutions are worried that Libra’s policy may hamper the monetary framework and facilitate money laundering and to some extent even forges the privacy of the users.
The ECB must be the Sole Institution to Issue a Currency
The European Union regulation expected to come out later this September. German finance minister said that as financial regulators of their respective countries it is their sole duty to ensure that financial markets in the country achieve optimal stability. However, the digital currencies which are issued by central banks are not a subject to the new set of rules and regulations that the commission will pass. Le Maire, the French finance minister said that the European Central Bank must be the only entity to issue a currency. Hence, there’s no way that it should be jeopardized or hampered by any external project, including the controversial protocol, Libra.