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The European Union Is Searching Ways to Regulate Virtual Currencies

The European Union Is Searching Ways to Regulate Virtual Currencies

The European Union (EU) is poised to find new methods of regulating virtual currencies. According to Bloomberg, Finance ministers from the EU will meet soon to discuss the challenges posed by digital assets. Additionally, a new set of rules could be debated.

EU Wants to Regulate the Market

The EU has lagged behind other nations in 2018 in figuring out regulations toward virtual currency trading. This is why the supranational institution is trying to reach a new consensus on how to regulate the market.

Finance ministers from the 28 members of the block will be discussing how to improve the regulatory environment. This is according to a draft note prepared for a meeting on September 7 in Vienna.

The document reads as follows:

“An informal meeting of the EU economic and financial affairs ministers takes place once during each presidency of the Council of the European Union. The EU economic and financial affairs ministers discuss current policy issues relevant to economic and financial affairs.”

Cryptocurrencies are sometimes seen as an instrument for money laundering or terrorist financing. This is why, the EU wants to put clear rules to avoid money laundering, tax evasion and more.

In Spain, for example, the government is trying to better control cryptocurrencies. However, the country is also requesting the EU for regional and international common regulations. Spain is a very important hub for virtual currencies in Europe.

The EU will have examples to follow. China, for instance, has completely banned crypto trading activities. Additionally, Initial Coin Offerings (ICOs) have also been banned. South Korea decided to take a similar approach to China. The Asian country banned ICOs and increased regulations on exchanges and individuals.

Nonetheless, Europe is searching for more flexible regulations than China and South Korea. According to the document, ICOs could work as a way to integrate capital markets in the block. Furthermore, ICOs ‘have established an effective way to raise capital.’

Germany, Spain, the United Kingdom, France, and Czechia are important hubs for cryptocurrency innovation in Europe. There are several companies actively working in the continent.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

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