European Commission promises 'strong' rules for Facebook's Libra

Thursday 25 June 2020 09:19 CET | News

The European Commission has announced plans to present later in 2020 new rules to develop a ‘sound’ crypto-asset market in the EU.

According to financial services commissioner Valdis Dombrovskis, these plans include stablecoins such as Facebook’s digital currency Libra. Crypto assets have brought benefits to consumers and businesses by offering cheaper and faster payments. But regulators are trying to catch up with the fast-developing market of these digital currencies, online publication Euractiv mentioned.

The European Commission has called for a ‘proportionate’ and differentiated approach to regulating digital currencies including Facebook’s Libra. Under this new regime, rules will be proportionate to the level of risks. Less risky projects will face lighter rules, while for global crypto-currencies such as Libra, rules would be stronger, given that they are likely to raise challenges in terms of financial stability and monetary policy.

The crypto-currency rules will be part of the new digital financial strategy for Europe to be announced later in 2020.
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Keywords: European Commission, Facebook, Libra, stablecoins, crypto assets, cryptocurrency, regulation
Categories: DeFi & Crypto & Web3
Countries: Europe
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DeFi & Crypto & Web3

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