El Salvador became the first country in the world to adopt bitcoin as legal tender, a real-world experiment proponents say will lower commission costs for billions of dollars sent home from abroad but which critics warned may fuel money laundering.
The finance ministers of France, Germany, Italy, the Netherlands and Spain called on the European Commission to include “strong rules” in its upcoming cryptocurrency proposal, in particular for global digital tokens like Facebook’s Libra.
The EU will set up a new college of supervisors, including national and European authorities, to oversee “significant” digital currencies including Facebook’s Libra, according to the European Commission’s cryptocurrency draft proposal seen by EURACTIV.
Cryptoassets are dangerously unregulated and may give rise to criminal activities, according to two recent assessments published by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA).
European decision-makers and regulators are progressing towards an EU approach for dealing with cryptoassets, digital assets that use cryptography such as Bitcoin and represent a booming market still viewed with concern by financial supervisors.
The EU's top official for the euro on Wednesday (20 December) pressed European regulators to urgently update financial rules in order to face bitcoin's dizzying volatility, after the crypto-currency leapt from $1,000 to $20,000 in under a year.
European Union states and legislators agreed on Friday (15 December) on stricter rules to prevent money laundering and terrorism financing on exchange platforms for bitcoin and other virtual currencies, the EU said in a statement.
While EU lawmakers are picking over proposals intended to drag Europe’s electricity sector into a 21st century dominated by intermittent renewable power and decentralised generation, others are already contemplating ways in which new digital technologies might shake things up even more.
A wave of anti-establishment sentiment sweeping the Western world is likely to help push blockchain – the technology that gave birth to the renegade digital currency Bitcoin – out of cyberspace and into the real world in 2017.
The digital revolution in the financial sector will get a helping hand from EU regulators later this year when the European Commission tables new proposals for retail financing, with a clear objective: let the revolution flourish.
Cash could become history within a decade, thanks to new financial instruments, including virtual currencies, some of the world's leading bankers said during the World Economic Forum on Wednesday (20 January).
France’s effort to intensify the fight against terrorism financing is expected to find a more cautious response from EU institutions and member states at a meeting of EU finance ministers on Friday (15 January).
Blockchain, the technology behind Bitcoin, is expected to take our digital environment to the next level. While the risks involved are growing in parallel with its development, regulatory responses are not a priority for lawmakers.
In a long-awaited ruling, the EU Court of Justice said on Thursday (22 October) that exchanging traditional currency for the digital currency bitcoin online should be exempt from consumption taxes just like other transactions of traditional currency.