European Central Bank Wants To Regulate Cryptocurrencies Before G20 Summit

The European Central Bank is eagerly awaiting for the G-20 summit to discuss about the prospects and implementation of cryptocurrency regulation. Prior warnings have already been issued by the European Union about the growth of cryptocurrencies such as Bitcoin which can bring upon doom if not regulated properly.

The 2nd Meeting of Finance and Central Bank Deputies coming from nations around the globe is scheduled to be held on 17^th and 18^th of March 2018 at Buenos Aires. The European Central Bank and countries like United States and Japan shall participate in the event which is expected to trigger a final stand point in regards to cryptocurrency regulation.

European Union financial chief, Valdis Dombrovskis pointed out after hosting a roundtable conference in Brussels :

“We do not exclude the possibility to move ahead by regulating cryptocurrencies at the EU level if we see, for example, risks emerging but no clear international response emerging. This is a global phenomenon and it is important there is an international follow-up at the global level,”

Finance ministers from countries such as Japan, Germany, Netherlands and France have already sought out implementation of cryptocurrency regulation. Their main intention remains in combating criminal activities and money laundering which are increasingly being entered into under the veil of cryptocurrency. But statistics revealed by various nations paint a different story all-together with just 1% of Japan’s entire money laundering amount being related to cryptocurrencies.

Mr Dombrovskis suggested on Monday’s event that the bank is on the lookout for various measures to bring upon cryptocurrency regulation. Dombrovskis says:

“This depends very much on the facts and circumstances around specific crypto-tokens. Based on the assessment of risks and opportunities and the suitability of the existing regulatory framework for these instruments, the Commission will determine if regulatory action at EU level is required”.

Also Read: European Central Banks Does Not Considers Cryptocurrencies As “Risky”

It is of prime importance for Dombrovskis to bring upon necessary regulation in the crytocurrency market lacking transparency and filled with speculation. Policymakers are also wary of the job loss that might occur on implementation of these hard regulations.

Blockchain technology is undergoing rapid expansion presently with more and more enterprises seeking help from the same to explore never thought before solutions.

Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.