According to Valdis Dombrovskis, Deputy Chairman of the European Commission for the Euro and Financial Stability, the EU wants to take advantage of the opportunities provided by the blockchain technology, adding that it was necessary to be vigilant and not allow the use of cryptocurrency for illegal actions.
“We ask the European supervisory bodies to strengthen the protection of investors and strengthen their oversight activities,” Dombrovskis said at a press conference in Brussels after the meeting of the EU Council on Economic and Financial Affairs.
According to him, in the context of the emergence of cryptocurrency, the rules for combating money laundering need to be updated. Cryptocurrency transactions should be about “less anonymity and more traceability with improved customer identification and improved supervision.”
The deputy commissioner of the European Commission believes that this requires urgent implementation. He also pointed out that the existence of the cryptocurrency affects various financial areas, including the activities of the European Central Bank.
“This is the reason why we intend to roundtable key representatives of the authorities and the private sector to assess the situation for a longer-term perspective,” explained V.Dombrovskis. In his opinion, this should be done as soon as possible.
At the end of December 2017, Dombrovskis voiced similar opinions, saying that the European Union should hurry and act urgently to the new market forces driven by cryptocoins such as Bitcoin.
“There are clear risks for investors and consumers associated with price volatility—including the risk of a complete loss of investment, operational and security failures, market manipulation, and liability gaps,” he wrote in a letter to other European regulators.
Top EU officals also agreed that regulations are needed. They say that the regulation should address not only cryptocurrency exchanges but also wallet services, which should their clients for proof of identification.