Valdis Dombrovskis, the Finance Commissioner of the European Union, has pledged to propose a new regulatory framework that aims to define the status of cryptocurrencies such as Facebook's upcoming crypto project libra, Cointelegraph reports on October 8th.
“Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this.” Dombrovskis said while speaking before the EU lawmakers on October 8th, according to Reuters. In addition to the call for regulation, the Finance Commissioner has also pointed out the need for address “unfair competition, cybersecurity, and threats to financial stability” in the EU.
While some member stated of the European Union, like France and Germany, have already stated their deep mistrust of the upcoming cryptocurrency libra, this new regulatory initiative could resonate these stances, creating a hostile regulatory environment for other currencies as well. It if therefore of paramount importance that the Facebook's leadership manages to persuade its government back in the states that libra represents no threat to their financial systems. A green light from the U.S. could sway the popular opinion in Europe as well, and prevent a possibly restrictive regulation to be put in place, costing the crypto community years of lobbying just to get back where we currently are.