The European Union is preparing to establish a new regime for regulating the sphere of cryptocurrencies, said Valdis Dombrovskis, Vice President of the European Commission. He declared:
“This is a good opportunity so that Europe can strengthen its position in the international arena and become a global founder of standards, while European companies are leading the way in the field of new technologies for digital finance.”
The primary goal of the plan is cryptocurrencies, added Dombrovskis. European laws already define the principles for regulating some aspects of the industry, for example, security tokens, while others, including stablecoins, remain in the gray zone. According to Dombrovskis, it is precisely the lack of certainty in regulation that is considered “the main barrier to the development of a strong cryptocurrency market in the EU”.
It is expected that the new regulatory regime will not only fill legislative gaps, but also bring this legislation to a single standard throughout the EU.
New proposals should be published before the end of the year. Dombrovskis also said that Libra, which is a prime example of a “global stablecoin”, is waiting for a new tightening of the rules:
“Global stablecoins carry additional challenges and can potentially be significant at the system level, so our rules for them will be stricter.”