Cryptocurrency market is bound to grow: European Commission Vice President 22755 EU and cryptocurrencies
News
Rakesh Ranjan Parashar
Sep 11, 2018 at 2:10 AM

The meeting of the EU Economic and Financial Affairs Council (ECOFIN) in Vienna on September 7 was watched by keen anticipation by the crypto community all across the globe. Following the meeting, European Commission Vice-President Vladis Dombrovskis has stated that the Council’s position on cryptocurrencies is that they are here to stay despite market turbulence.

As BC Focus reported earlier that the 28 EU finance ministers would meet for an informal gathering in Vienna, Austria to discuss new rules for the nascent cryptocurrency sector.

Highlighting the growth of the cryptocurrency market, Dombrovskis said that the Council has developed a broadly positive view of cryptocurrencies and ICOs, and the Council sees the growth of the crypto market as a proof of their viability.

He said:

“We see that crypto-assets are here to stay. Despite the recent turbulence, this market continues to grow. In particular initial coin offerings, or ICOs, we see they have the potential to emerge as a viable form of alternative financing. Already last year, ICOs helped raise over 6 billion dollars in funding and this year this figure will be substantially bigger.”

EU to keep monitoring developments in the crypto space

Dombrovskis, who is in charge of financial stability, financial services, and capital markets union in the EU has always stressed the need for a common and unified regulatory framework to keep a check on the uncertainty surrounding the crypto market.

Speaking at the gathering, Dombrovskis again reiterated his concerns about the crypto market, stating that there are implicit risks for investment protection and market security, but also the risk of money laundering, potential fraud, and hacking.

This he said, is a cause for the EU to keep on monitoring developments in the crypto space.

He also said that the major challenge regulators face with crypto assets is the confusion surrounding the regulations.  He a said that the main challenge is to determine whether to apply existing EU financial rules to them or to develop new rules.

Against this backdrop he said, the Council is working in conjunction with European Supervisory Authorities on a crypto asset regulatory mapping project to provide answers to these questions.

Emphasizing the fact, he said:

“Many member states today supported the need for such mapping, so we expect to conclude this assessment later this year. This will provide a solid ground to build on and to decide on further steps in this area.”

See Also: The European Commission to fight ‘fake news’ using blockchain

EU finance ministers will meet on September 7 to discuss the future of cryptocurrencies

Image via Shutterstock

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