The hype surrounding Libra led the EU to create new regulatory frameworks for the entire cryptocurrency industry as a whole.
The European Union will regulate cryptocurrencies – Valdis Dombrovskis, Vice President of the European Commission and European Commissioner for Euro and Social Dialogue, proposed the development of a common regulation for all cryptocurrencies.
“Europe needs to develop a common approach to cryptocurrency assets such as Libra. I intend to propose new legislative measures in this matter” – he said.
As the main directions of future regulation, the official noted several main areas: unfair competition, threats to financial stability and cybersecurity. He did not disclose more detailed details, but when approaching the regulation of cryptocurrencies, measures to combat money laundering and the financing of terrorism will not be dispensed with.
As for unfair competition, a funny situation arises. Earlier, the European Commission has already investigated the possible lack of competition in the Facebook cryptocurrency project due to its scale. The adequacy of this approach raises questions: if no one can compete with Libra, these are not Facebook problems. Most likely, with this fictitious concern for smaller players, the EU is covering up its fears about the lack of competitiveness of the Euro.
Given that we are talking about the whole Europe, the consequences of introducing large-scale regulation may affect the entire industry, but how it depends on the approach to controlling digital currencies. Now, most projects are simply forced to survive after the collapse of two years ago, and strengthening control over them can be a final blow. However, so far all these conversations remain at the level of theory, and years can pass before taking real measures.