Brussels Think Tank: EU Must Set Rules For The Cryptocurrency

Brussels Think Tank: EU Must Set Rules For The Cryptocurrency

Brussels Think tank: EU must set Rules for the Cryptocurrency. The European Union must establish general rules for cryptocurrency and examine how the digital currencies are traded.

 

That is what Bruegel think tank in a report addressed to European finance ministers.

The controls must ensure that risks from the currency are limited.

The blockchain technology would also be better utilised through clear guidance,

 according to Bruegel, who saw the report on Wednesday.

The report is presented to the ministers in Vienna, where they attend on Friday and Saturday.

According to the think tank, the regulations must concentrate on an exchange of cryptos, and on so-called ‘Initial Coin Offerings’ (ICOs).

With ICOs, for example, a company increases money by issuing cryptocurrency as shares, which are called ‘tokens’.

The Authority for the Financial Markets in the Netherlands already indicated earlier that these are very risky,

 and even in 80% of the cases, they turn out wrong.

EU stood aside for a long time
Up until now, the EU has not acted on rules for the cryptocurrency, because the sector is relatively small.

Bitcoin, the most popular currency, would only be swapped for euros.

The EU’s concerns increased, nevertheless, because of the massive currency exchange rate changes,

 and the fraud risks associated with the digital currency.

The price of the bitcoin fell sharply again compared to the US dollar today, by over 4.5 percent.

This year the currency unit already decreased about 60 percent in value after having gigantic in December 2017.

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