EU-level regulation for cryptocurrencies and ICO market may send Bitcoin and other coins to fresh lows
EU finance ministers call for crypto and ICO regulation on EU level.
Brussels-based Bruegel suggests tighter regulation or even ban.
The Brussels-based think tank Bruegel prepared a document for EU finance ministers with the aim to promote EU-level regulation of digital assets and initial coin offerings, according to Reuters. It is supposed to be discussed by the ministers on Friday during their meeting in Vienna.
EU authorities have been making noises about risks related to highly volatile crypto market, prone to scams and vulnerable to hack attacks. However, they avoided comprehensive regulation due to the small size of the segment, but the growing popularity of digital assets in the European countries might force them to change their mind.
"Now the possible expansion of the crypto exchange business in Europe and considerable interest in ICOs in EU countries, which account for 30 percent of the global market in terms of projects funded, is pushing regulators to take a closer look," Reuters reports.
Malta, for example, strives to create a favorable regulatory environment for blockchain projects in hopes that they will support the economic development. The efforts of the Maltese was rewarded as many companies including Hong Kong-based Binance, one of the world’s largest crypto exchanges, flocked to Malta.
According to Bruegel, the authorities should focus on regulating or even banning entities that deal with cryptocurrencies and tokens. The think-tank noted the restrictive Chinese approach towards the industry.
Alan Zibluk Markethive Founding Member