European Union Commissioner Proposes Cryptocurrency Regulation; Especially For Libra

    Libra is scaring the European governments as Facebook and two dozen firms look forward to the launch of the stable coin in early 2020. The Executive Vice President of Designate an Economy that Works for People and European Union’s financial commissioner, Valdis Dombrovskis, called on the union to set up laws to regulate crypto assets arguing the launch of Libra may destabilize the financial industry in the region.

    In a confirmation hearing on his re-election to the financial board, Valdis said he will propose new laws to govern the cryptocurrency industry – especially the upcoming Facebook-backed cryptocurrency, Libra. Valdis said,

    “Europe needs a common approach on crypto-assets, such as Libra. I intend to propose new legislation on this.”

    Europe’s fear of Libra Cryptocurrency

    France’s financial mister and financial authorities in Germany have shown concern on Libra’s perceived influence on its monetary policy. With over 2 billion people under Facebook’s wing, Libra is expected to become the largest cryptocurrency surpassing Bitcoin once it launches.

    The EU has however been surprisingly mum on the subject of cryptocurrencies in the past. This may be attributed to the minimal use and value the industry contributes to its financial system as seen with Valdis’ latest comments. Despite being in the commission for the past five years, Dombrovskis did not raise any issues with the digital asset industry, well, until Libra.

    In his speech he made it clear to the lawmakers that his latest proposal stems from Facebook’s plans to launch Libra token. He believes the launch of the token could have systemic effects on the financial stability of the European Union.

    The Latvian commissioner further called on crypto regulation to focus on tackling money laundering, protecting consumers and investors, and ensuring financial stability.

    A US National Security Issue

    As countries look for the best way to deal with Libra’s upcoming launch, the US is part of the regulation-uncertain areas. The House of Representatives financial commission recently asked for the company to halt the development of Libra.

    However, on Oct. 7, a former DoJ attorney and Andreessen Horowitz crypto fund manager, Katie Haun, said a ban on the stable coin could constitute to a national security risk as other competitor countries develop their own digital assets.

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    Lujan Odera
    Lujan Odera
    Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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