EU’s “Crypto Regulation” May Impose Limitations on Libra
Valdis Dombrovskis, Vice President of the European Union (EU) Commission – European Commission Executive Vice President for the Employee Economy for the EU, said that Europe needs to act to become one of the main setters for digital finance.
“This is a great opportunity for European companies to lead new technologies in the field of digital finance,” Dombrovskis announced in this week’s Digital Finance Support 2020 statement. he passed his statements.
In addition, Dombrovskis said, “Although some cryptocurrencies, such as securities tokens, are well dealt with in European law, many of them – the most striking stablecoins – are not yet regulated.” said.
Vice President of the EU Commission underlined that the lack of legal clarity is often emphasized as the main problem for the establishment of a strong crypto-asset market in the EU.
Stating that the draft area of the experiment area (pilot region) will provide the regulatory institutions with space for the evaluation and observation of new experimental solutions, Dombrovskis said that the EU tends to impose strict rules on projects that are seen as “global stablecoin”.
Vice-President of the EU Commission noted that stablecoins that will operate globally, such as Facebook’s Libra project, can “bring additional challenges” and underline that they can distort financial and monetary stability.
“Overall, our outlook will be proportionate and dependent on risk values. This means that it will include lighter rules for less risky projects. For global stablecoins like Libra, it may mean that our rules for systemic roles will be more stringent,” he said.