Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: BradSow on June 29, 2020, 10:45:24 AM
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Global stablecoin projects from the across the world will have to meet some stricter regulatory rules if they have to operate in the European Union. In this regard, the EU is working on a new cryptocurrency regime says EU’s lead economics minister, Valdis Dombrovskis.
During his speech at the Digital Finance Outreach 2020 earlier this week, Dombrovskis said that Europe needs to seize this opportunity and take a lead role in setting up the new rules for digital finance.
“This is a good chance for Europe to strengthen its international standing and to become a global standard-setter, with European companies leading new technologies for digital finance,” he said. The economics minister has said that the first test case for new regulatory regime would be cryptocurrencies.
Currently, the European law covers rules for some cryptocurrencies such as the security tokens. However, the cryptocurrencies that fall in the stablecoin category still remain largely unregulated. Dombrovskis added that this “Lack of legal certainty is often cited as the main barrier to developing a sound crypto-asset market in the EU”.
Moreover, one of the major challenges that EU is currently facing is that some of its members have taken matters into their own hands. Well, this negatively affects the market integration making it further difficult for businesses to operate within the EU trading bloc.
The new regulatory regime aims to address all these bottlenecks. In addition to covering digital assets under the new rules, the EU also plans to tweak existing standards across its member countries in order to accommodate digital assets.
Dombrovskis hasn’t provided much details into how the future regime would look like. However, he said that the framework would include measure that support and promote innovation.
They first plan to launch a pilot scheme that gives some space to regulators to experiment new solutions, and also monitor and observe them. But as a caveat, he also added that the EU is planning to bring stricter rules on projects that are deemed to be termed as “global stablecoins”.
The EU had a tough time dealing with Facebook’s Libra launch last year. Such stablecoins that operate on a global map can bring more challenges for the regulators and Dombrovskis says that they can potentially disrupt the monetary and financial stability.
Speaking about the rules in general, Dombrovskis said that “Overall, our approach will be proportionate and relate to the level of risk. That means lighter rules for less risky projects”. Concluding his speech by speaking about global stablecoins, Dombrovskis said “their potentially systemic role [means] our rules will be stronger.”
source: https://www.worldcoinindex.com/news/the-european-union-is-working-on-a-new-cryptocurrency-regulatory-regime (https://www.worldcoinindex.com/news/the-european-union-is-working-on-a-new-cryptocurrency-regulatory-regime)
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Of course, stable coin circulation, especially if it is commercial and private stable coin, should be regulated by states. This is quite logical. After all, this concerns the security and financial stability of these states.
Earlier, the finance ministers of the European Union states said that they would not allow the passage of Libra on their territory. Maybe the regulators will nevertheless determine the conditions for the circulation of this stable coin and there will be no unconditional ban on Libra.
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The regulation of stable coins is necessary and is a logical step on the part of the countries of the European Union. This segment of the financial market is growing in volume, if you use it at your discretion, then big financial upheavals are possible. Therefore, such regulation should even be carried out at the level of the G20 countries or regulated by a multitude of international agreements.
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Regulations like this are definitely needed by the European Union to create stable coins that can be used by everyone in Europe.
It might take a lot of time to study things like this but it's also good for the European Union so that the Euro can be received by cryptocurrency traders.
Maybe EUT atau Europe Union Token is good for ticker stable coin of EURO .
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Stablecoin is the best option in which we can use that for the saving of our coins loss becasue if we are going to trade then we transfer our coins in USDT instantly to safe from loss.
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It is true like that and it is a safe trick for all of us in cryptocurrency trading.
Because everyone knows that stable coins are coins that don't have very large volatility.
But remember with the title of this thread, namely stable coins have regulatory issues in Europe and this should be resolved quickly!
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Stablecoin is the best option in which we can use that for the saving of our coins loss becasue if we are going to trade then we transfer our coins in USDT instantly to safe from loss.
I think that USDT is not only for assets that can be stable because eGold can also be an asset so that we trade not to experience large losses.
Even eGold can continue to rise as the price of gold goes up and now I see that the price of pure gold continues to rise in various markets around the world.
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Regulation of the conditions for circulation of stable coins of various forms of ownership on the territory of the European Union was inevitable and everyone should understand this. However, it will be interesting if the countries of the European Union follow the path of the Chinese government and ban the use of their euro as collateral for other stablecoins. It is quite possible that it will be so. Then other states will follow and the current stablecoins will die. Only the stable coins of the central banks of the states will remain.