Valdis Dombrovskis Pledges to Provide Unified Crypto Rules in the EU

Wilfred Michael 

Wilfred Michael

News reporter

08 October 2019,
15:48
Valdis Dombrovskis Pledges to Provide Unified Crypto Rules in the EU

Valdis Dombrovokis, the European Union’s Finance Commissioner who is seeking reappointment, has pledged to provide unified regulation on cryptocurrencies such as Facebook’s Libra.

Dombrovokis reportedly made the pledge during his confirmation hearing before EU lawmakers, telling his audience:

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

The Commissioner subsequently identified “unfair competition, cybersecurity, and threats to financial stability,” as areas where EU regulators must pay attention to while creating rules on cryptocurrencies.

Interestingly, the EU commissioner’s latest comments on cryptocurrency regulation come amid a proposed move by the United Kingdom’s Financial Conduct Authority (FCA) to ban the sale of crypto derivatives to retail investors.

That move, as per the FCA, is designed to protect retail investors from the volatility associated with crypto-based derivatives but has not gone down well with both crypto industry participants and other agencies.

For instance, we reported earlier today that the World Federation of Exchanges (WFE) counseled the FCA against banning the sale crypto-derivatives for retail investors. Instead, the WFE advised the UK regulator to find a balance between allowing the products the exist and protecting investors, sentiments that are similar to Valdis Dombrovokis’s latest call for unified regulation.

 

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