The EU is asking citizens to help define crypto regulation

The European Commission (EC), the executive body of the European Union (EU), has launched a public consultation on the regulation of cryptocurrencies, as the world’s second largest economy aims to strengthen its positions in the global payments market.

The EC invites investors, banks, supervisors, consumers and other interested parties to share their views on how the financial sector could benefit from digitization safely, according to executive vice president of the commission Valdis Dombrovskis.

“We also want to be open to financial innovation, so that the EU can grow and compete globally in the payments market. This means that we must develop a common approach on crypto assets, addressing risks proportionately,” he said. .

The EC states that “cryptocurrencies have the potential to bring significant benefits to both market players and consumers”, including the most efficient ways to finance small and medium-sized enterprises through token sales.

“If adequate investor protection measures were in place, crypto assets could also represent a new asset class for EU citizens. Payment tokens could also offer cheaper, faster and more efficient payment opportunities, limiting the number of intermediaries, “they added.

In addition, the Commission would like to consult on regulatory improvements that would help the financial sector deal with cyber attacks and other risks.

According to the EC, these consultations provide a first step in the process of defining the key elements of a broader strategy for promoting digital finance in Europe. They argue that feedback from public consultations will contribute to the Commission’s assessment of possible upcoming initiatives. The consultation will remain open until 18 March 2020, while in the coming months the Commission will be able to consult more in depth on other issues in this area.

Now, the EC is asking more general questions aimed at getting feedback on the use or potential use of cryptocurrencies. In addition, they want to hear from stakeholders if and how to classify crypto assets and to have views on crypto assets, which currently fall or fall outside the scope of EU legislation.

Here are some examples of their questions:

• Have you ever owned crypto assets?
• Do you expect or expect to hold crypto assets in the future?
• Do you agree that the scope of this initiative should be limited to crypto assets (and not be extended to digital assets in general)?
• What are the most important benefits related to crypto assets?
• What are the most important risks related to crypto assets?
• What are the most important risks associated with “stablecoins”?