The European Union is preparing itself to regulate cryptocurrencies if risks emerging from the sector are not handled at the international level, European Commission Vice-President Valdis Dombrovskis said Monday after a roundtable on cryptocurrencies.
The financial services commissioner stated that the EU will take the decision on addressing the issue of cryptocurrencies later this year or early in 2019.
Further, he said blockchain technology holds a strong promise for financial markets and urged the nations to accept it to remain competitive, but by checking problems that expose investors to substantial risk.
The European Commission in early this month had unveiled the EU Blockchain Observatory and Forum to highlight key developments of the blockchain technology, as well as to consolidate related activities within the EU.
Talking about the cryptocurrencies and initial coin offerings or ICOs, Dombrovskis said the craze over digital currencies is a global phenomenon and that there needs to be an international follow-up at the global level.
Dombrovskis told reports that the EU does not exclude the possibility to move ahead with the plan of regulation at the EU level if a clear international response is lacking to face the emerging risks.
The roundtable was attended by the European Central Bank, industry bodies, and the Financial Stability Board that writes and coordinates regulation for the Group of 20 Economies.
The finance ministers of G20 countries and central bankers might discuss cryptocurrencies while they meet in Buenos Aires in March.
Reuters reported that there is no strong consensus among G20 countries to regulate digital currencies closely, as these are considered to be a tiny part of the financial system despite risks.
by RTT Staff Writer
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