According to Valdis Dombrovskis, Executive Vice President of the European Commission, the European Union plans to issue stricter laws to regulate stable cryptocurrencies.
On Friday, September 11, finance ministers from several countries, including Germany and France, called for tighter regulation of stablecoins in the region. Already on September 12, Valdis Dombrovskis issued a statement that officials are aware of the problem and are preparing a bill on the regulation of stable cryptocurrencies. He emphasized:
“Some ministers yesterday expressed concern about the risks associated with so-called stablecoins, which are outside the scope of our laws. Rest assured that our bills will offer a comprehensive solution to this problem. We will regulate the risks of financial stability and monetary sovereignty associated with the use of stablecoins for payments. “
At the same time, Dombrovskis noted that the regulation would be “adequate”. Stablecoins offer many new opportunities, and the European Commission is going to regulate innovation, but not destroy it.
A clear legal framework for the regulation of cryptocurrencies and stablecoins is expected to emerge soon in the European Union. Such assets, as well as the companies issuing them, will come under the jurisdiction of regulatory authorities both at the state level and at the EU level.
On Friday, Bank of France Governor François Villeroy de Galhau said the EU cannot turn a blind eye to the risks associated with cryptocurrencies and postpone tackling these problems.