Crypto ‘Here to Stay’ but Needs Classification, Says European Commission Vice President

The European Union (E.U.) will focus on the development of crypto asset classification and regulatory mapping, European Commission Vice President Valdis Dombrovskis claimed at a recent meeting of Economic and Financial Affairs Council (Ecofin) in Vienna.

According to Dombrovskis, crypto assets are “here to stay,” and the crypto market still “continues to grow” despite “recent turbulence.”

The Commissioner claimed that, in order to address major issues around cryptocurrencies, the E.U. will focus on the main challenge that is how to “categorize and classify” crypto assets this year. He also stated that the organization will consider whether existing E.U. financial regulation can be applied, or if there is rather a need to develop new rules.

As Dombrovskis stressed, the Commission has already teamed up with European Supervisory Authorities in order to develop a so-called “regulatory mapping” of crypto assets to provide a “solid ground” to establish the status of cryptocurrencies, as well as to set up “further steps in this area.”

In his speech Dombrovskis paid special attention to Initial Coin Offerings (ICOs), characterizing them as a “viable form of alternative financing,” and pointing out that ICOs generated $6 billion last year. Dombrovskis further emphasized that “this figure will be substantially bigger” in 2018.

Concerning other problems in the field, Dombrovskis mentioned the major risks of crypto, including “lack of transparency,” protecting investors, market integrity, as well as money laundering, fraud, and hacking.

In this regard, the Latvian politician suggested the need to keep monitoring the dynamics of the industry, stressing the importance of cooperation with global partners at the Financial Stability Board (FSB) and G20.

This summer, the FSB claimed that crypto assets do not pose any material risk to global financial stability, while the sphere still needs in-depth monitoring due to rapid market development.

On September 5, Cointelegraph reported that Belgian think tank Bruegel released a report calling for E.U.-level unified legislation on cryptocurrencies, and more regulation for ICOs.