In Europe, several of the countries that make up the European Union are putting forward a proposal to create a regulatory body in charge of supervising all activities related to cryptocurrencies and digital assets.
Un article published by the newspaper El Economista reveals that the European Union is preparing a proposal that proposes the creation of a regulatory body, which will be in charge of supervising the cryptocurrencies, and digital assets. If this proposal materializes, the European Union will become the first regulator in the world to implement standards, regulations and other regulations in relation to the use, adoption and implementation of these digital assets. Furthermore, with the creation of this body, the European Union aspires for the different organizations and government authorities of each country to be part of the proposal, in order to strengthen the region's regulatory approach to this developing industry.
“The EU will establish a new college of supervisors, with national and European authorities, to supervise significant digital currencies.”
For some months now, the European Union has been giving clear indications of its desire to lead the legal and legal field within the crypto ecosystem. Until recently, the Executive Vice President of the European Union, Valdis Dombrovskis, gave a speech in which he urged Europe not to waste the present opportunity, with the current economic crisis and the growing interest in digital assets, to become a pioneer in the implementation of regulations towards cryptocurrencies within the region.
The European Union proposal focuses on the regulation of cryptocurrencies as Bitcoin y Ethereum, but shows special interest in the regulation of digital assets such as Pound Facebook.
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Cryptocurrencies, the money of the future
The current economic crisis is driving the world's population to look for viable and sustainable alternatives to fiat money. The need for an efficient medium of exchange and a secure store of value are qualities that the world's population is discovering within cryptocurrencies and, especially, within digital assets such as stablecoins. This type of crypto assets fulfills the promise of being an effective, efficient and safe form of money, without the risk of price volatility, which exists and is typical of cryptocurrencies.
Still, despite the qualities that crypto assets demonstrate as a new efficient and programmable form of money, regulators around the world continue to be concerned about the risks associated with the use of this type of digital currencies. Numerous analyzes and reports show that cryptocurrencies and digital assets are not widely used in illicit activities, at least not for the moment, but they also reveal that, due to their qualities, these assets can be very attractive to cybercriminals and terrorists. For this reason, in order to prevent the number of cryptocurrencies involved in cases of illegal activities from growing disproportionately, regulators propose the creation of a supervisory and regulatory body that imposes the necessary guidelines to establish a correct and transparent use of all cryptocurrencies. existing assets.
This new body is designed to regulate and provide legal and legal security to users and investors of cryptocurrencies and stablecoins, although the proposal does not propose a regulation on the CBDC, digital currencies issued by central banks.
Concern over Facebook's Libra project
Since Facebook executives announced their digital currency project Pound In 2019, regulators around the world, especially in China, the United States and Europe, are on alert. A digital currency of global order, as Facebook aspires, and that will be within the reach of the more than 2.700 billion users that the platform currently has, puts the economic stability of the main nations at risk. Almost instantly, economic representatives of the great powers expressed their concern about Facebook's intentions to launch a global digital currency, such as the Minister of Finance of France, Bruno Le Maire, who assured that they will not allow a digital currency like Libra to risk the economic and financial stability of their nation.
And beyond considering Libra an economic threat due to its global reach, regulators are also concerned about the management of the data that executives will give to the information and general privacy of users. For few it is a secret the unethical practices that the company uses to profit. The sale and lack of security to protect the private and personal data of users leaves a lot to think about Facebook, and even more so if it has aspirations to handle banking and financial information of users.
Due to its unreliable and transparent experiences in terms of security and protection of private data, regulators, and the crypto community in general, do not approve of Facebook's digital currency project, and have thus far hindered its progress. Now, with the creation of this new regulatory body, the European Union hopes to impose strict and essential regulations for the supervision and management of this type of assets, so that the companies behind their development comply with their obligations and sanctions in case of incur a fault.
Europe, innovation and legal certainty
The European Union proposal seeks to implement new rules and regulations in the cryptocurrency and digital asset market, guaranteeing stability, legal security and protection to users, consumers and investors of digital assets. Likewise, the proposal seeks to encourage and support technological development and innovation, guarantee the financial stability and integrity of the cryptographic market in the region.
The new regulatory body will include: the National Authority of the Member State, the European Securities and Markets Authority, the European Central Bank and any other central bank of the countries that make up the European Union. This new body will have the power to closely supervise the use and management of cryptocurrencies and stablecoins, as well as the power to establish the necessary regulations to regulate operations carried out with cryptocurrencies, especially those considered risky. For their part, the supervisory bodies will also have the authority to supervise the management of the exchanges and cryptocurrency exchanges, as well as custody houses and other companies that provide financial services related to these digital assets.
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