The members of the European Commission exchanged views on cryptocurrencies. But it seems that the matter did not get any further. Probably, the officials are waiting for a sign. What signs, where from and when?
The vice-president of the European Commission Valdis DOMBROVSKIS, speaking at the final press conference of the Council for Economic and Financial Affairs of the EU, confirmed that the issue of the cryptocurrencies future had been discussed at the session and that the EU states favored the idea of creating a legal framework, regulating the turnover of virtual assets.
“Cryptocurrencies joined the market to stay, - he said to the journalists. - And despite the fluctuation, the market continues growing”.
However, the participants in the discussion are sure that the legal basis regulating the crypto market will not appear tomorrow.
“ICOs have the potential to develop as an alternative source of financing. Last year they gathered $6 billion already, this year the amount will be significantly greater, - the official said. – But at the same time, we notice the risks coming from the absence of the procedure transparency, their danger from viewpoint of the security of the investments and market integrity, and also the opportunity for money laundering, scams and hack attacks”.
The officials consider the complexity of classifying the cryptocurrencies and the applicability of the norms of the European financial law to the crypto market to be the main problems of the regulatory management of the cryptocurrencies. Probably, this segment of the global economy needs a separate legislation.
“Thus, it is necessary to continue monitoring the progression of events in this sphere, - Valdis DOMBROVSKIS emphasized. – And we should do it in cooperation with our partners from the Financial Stability Board of G20”. In addition, together with European experts, we continue working on what we call a regulatory image of crypto assets. The member states of the Board favored the idea of creating a roadmap on the issue of the cryptocurrencies and we are planning to finish the project this year. This will provide a strong basis for the further decision making’.
Without arrangement, on the same day, the Head of the Financial Conduct Authority (FCA) of Great Britain Andrew BAILEY at the public session of the institution announced that one needed to approach soberly the issue of innovations, new technologies, and their influence on the economy. He also emphasized that “the risks coming from the cryptocurrencies were too evident” not least because the market was too volatile and the investors had no clear understanding of the nature of virtual assets. To minimize possible economic and reputational losses, the authorities of the Foggy Albion created a special “crypto workgroup” that, in addition to the Head of the FCA, was joined by: the CEO of the Financial Service Department of the HM Treasury Catherine BREDDICK, the vice-chairman of the Bank of England Dave REDSMAN, and also a group of academic economists.
Today, the experts of the IMF warned the government of the Marshall Islands against adopting the national cryptocurrency – the crypto sovereign – as an official means of payment. Economic and reputational losses from adopting virtual assets may exceed potential benefits, the IMF report says. The document also contains an obvious hint that the Marshall Islands are dependent on the foreign help and tending to be affected by various natural disasters. At the same time, of course, the US dollar has been adopted as an official payment unit on the territory of the island state.
Surprisingly, these statements were issued on the same day, September 11. And they have the common denominator – the USA. How cannot one believe in miraculous coincidences after this? Perhaps, both European and British regulators are waiting for the decision of the US SEC on the bitcoin-ETF issue. The session of the commission will take place in 10 days and its decision will carry not only financial but also geo-economic consequences. It is unlikely that in case of the positive decision investors will immediately rush to issue the securities nominated in virtual assets. But undoubtedly, this will be a declaration of the legitimacy of digital money in the financial market. Or of the illegitimacy. And then, all these “monitor the situation”, “study”, and “analyze the risks” will be likely to turn into the firm “no”. Because the main risk of the crypto – is the threat to the global monetary system, controlled by the Big North-American Brother.
By the way, the representatives of Germany where the cryptocurrency had been adopted as an official means of payment withheld comments on the results of the European Commission session.