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European Commission Vice-President Valdis Dombrovskis recently spoke at the ECOFIN press conference in Vienna, commenting that the burgeoning cryptocurrency ecosystem and its related products are here to stay.
Optimal Environment for Growth
Addressing the optimal environment enjoyed by financial companies operating in a low-interest rate environment – and issues that were caused due to its rise – Dombrovskis hinted the European Union was a ripe place to conduct business for cryptocurrency ventures. He added the monetary policy has “been very accommodating” to support economic innovations.
“The main aim here is to ensure full, smooth adjustment without any adverse influence of the policy normalization on the financial sector and real economy.”
Talking about the fiscal policies, Dombrovskis emphasized rebuilding budgetary buffers in the Member States to increase maneuverability in case of another downturn. Moving ahead to the Commission’s side, he spoke about implementing post-crisis financial regulatory reforms to strengthen the resilience of the financial system.
Crypto Here to Stay
“Crypto is here to stay,” he added as he spoke about ICOs being a good option for alternative financing. He also pointed out that last year, ICOs helped raise over USD 6 billion and expected this year’s figure to be more prominent.
However, he was not all praises for the digital currency class as he rightly pointed out the lack of transparency and the risks that are linked with trading digital tokens. But, he highlighted the Commission’s goal is to monitor developments in this area along with international partners at the Financial Stability Board or G20 level.
The Commission has partnered up with the European Supervisory Authorities to categorize and classify crypto-assets more efficiently. This venture has been labeled as the regulatory mapping of crypto-assets which makes it easier to understand if the current EU financial rules apply to these assets or new laws are needed. Members are for this initiative, and this will be a substantial first step in the crypto-domain.
“I also note that we have already expanded the scope of the EU anti-money laundering and anti-terrorism finance legislation to crypto-asset exchanges and custodian wallet providers.”