An Economic and Financial Affairs Council meeting was held in Vienna recently and brought up the conclusion that the European Union will put emphasis on the growth of crypto asset classification and mapping regulations.
Valdis Dombrovskis, the vice president of European Commission, stated that the crypto industry will stay and even become bigger and bigger in the future. The existing financial regulations can be applied to the digital asset but if necessary, the E.U. will come up with new rules. Their current issue is how to categorize and classify digital assets. Dombrovskis mentioned that there is already a team with European Supervisory Authorities called “regulatory mapping” of cryptocurrencies with a purpose of solid base to establish and proceed the status of digital assets.
Dombrovskis made a speech which was focused on the Initial Coin Offerings (ICOs), classifying them as a “viable form of alternative financing” and mentioning ICOs made $6 billion last year. He emphasized that it’d be bigger in 2018. At Financial Stability Board (FSB) and G20, the commissioner added that it is important to keep monitor the fluctuation of the market and have a good cooperation with international partners.
In the summer of 2018, the FSB announced that cryptocurrencies do not take any risk to global financial stability while it still requires careful consideration because of the rapid market grow.
Author: Jieun Lee