Wait, did the EU just legalize cryptocurrencies?
In the morning hours of 26th February, the EU representatives sat to discuss the future of the cryptocurrency market along with key authorities, important players of the industry and experts. Who shared their insights and shed light on all things blockchain to the board. The sole aim of the roundtable conference, however, was to discuss Europe’s stance on FinTech and note down key points for later discussion in the G20 summit.
Since the cryptocurrency market and blockchain technology are spear-heading the 21st century’s FinTech it comes as no surprise that it was at the centre of all discussions.
Though on its own, the European Union constitutes a very small part of the market, the cryptocurrency market is on a global level with investors and asset holders all over the world. And as a market alone it has grown at a rate too fast to be ignored.
Valdis Dombrovskis, a VP in the EU, said, that they needs to work together with its G20 partners to find a solution to incorporate the use of cryptocurrency.
The three main agenda points of the roundtable today were:
- The implications the cryptocurrency market will have on the financial markets
- The risks and opportunities associated with their use;
- And recent developments in Initial Coin Offerings
After hours of discussion and contemplation the roundtable meeting concluded:
- The blockchain technology, as disruptive as it may be, holds a great deal of promise for the financial market. And to be able to harness its full advantage, Europe will have to adopt this innovation.
- Cryptocurrencies do not have a specific value and are by no means accepted as traditional currencies. The volatility of the market poses a major threat to people and their assets and it is important that people are fairly warned about the risks of participating in the market’s day to day frequently, continuously and across all jurisdictions
- ICO’s have taken over the market in aspects of raising funding for projects and products. Though this method opens the founders/developers to huge risks because the source of the money remains anonymous, it has become the standard for fundraising and therefore must be made more secure, instead of being shunned.
- Further study into whether the cryptocurrencies and the market can be put under already existing regulations must be done
- And finally, cryptocurrencies are used to launder money and hide assets so it is going to become a necessity for all exchanges and wallet providers to submit to the Anti-Money Laundering Directive.
In conclusion, the European Union stands ready to take actions based on a further assessment of the volatility and the great opportunities that the cryptocurrency market provides. And, according to a press release by Germany’s Vice President, after further discussion in the upcoming international forums, a plan of action will be formulated to integrate the cryptocurrency market and the technology it runs on into the existing financial markets of the EU.