Cryptocurrency and blockchain businesses are growing and expanding all over the world. Since cryptocurrencies experienced a prosperous 2017, governments are trying to regulate the markets like never before. But it is also important to understand that hard regulations will only kill an industry ready to keep expanding.
EU Banking Authority Regulations
The European Union Banking authority believes that an excessive cryptocurrency regulation is not optimal. This is what the Chairman of the European Banking Authority said during a meeting at the Copenhagen Business School the in Friday. According to him, cryptocurrencies should not have the same regulations that are applied to the traditional financial system.
Andrea Enria, explained that fluctuations in the market confirm the view that cryptocurrencies cannot fulfil the functions of money. He has also said that cryptocurrencies can be used for payments, including international payments, due to the fact that they are powered by blockchain technology.
“Still, I am yet to be convinced that this is sufficiently strong argument to attract cryptocurrencies under the full scope of regulation,” he commented.
Mr Enria pointed out that policies towards financial innovation focuses on restrictions and regulations, something that does not give space for the innovations to take place. Blockchain industry and cryptocurrencies need a breathing space to create and develop themselves.
Andrea Enria explains that it is important to have a pragmatic approach on the matter, implementing a specific regulatory framework in accordance with the risk of the firms, customers and financial sector.
Some days ago, the European Union released its position towards Fin-tech and blockchain companies.
About that, Mariya Gabriel, Commissioner for the Digital Economy and Society said:
“Digital technologies have an impact on our whole economy – citizens and businesses alike. Technologies like blockchain can be game changers for financial services and beyond. We need to build an enabling framework to let innovation flourish, while managing risks and protecting consumers.”
The European Union may be changing its position towards cryptocurrencies and blockchain technology. In some days, there will be an important meeting with Finance Ministers from G-20 countries. The European Union will be present and it will explain its stance towards cryptocurrencies.