The European Commission (EC) is aiming to conclude a regulatory assessment for the governance of crypto assets this year, industry website Coindesk has reported, citing a high-ranking EC official.
Speaking at the at a press conference following a meeting of the Economic and Financial Affairs Council on Friday, EC vice president Valdis Dombrovskis talked about the regulatory steps that need to be taken in order for the potential of cryptocurrencies to be best utilised. Dombrovskis explained that the main challenge was how to “categorise and classify” crypto assets and decide whether the European Union should use existing financial market rules or create a separate set of rules dedicated to digital currencies. He also indicated that member states are supportive of the commission’s moves to create regulatory framework for the sector.
“We also had a good exchange of views on crypto-assets. We see that crypto-assets are here to stay. Despite the recent turbulence, this market continues to grow,” Dombrovskis said, as quoted by Coindesk.
The EC vice president also touched upon initial coin offerings (ICO), the controversial fundraising practice that has been banned in some countries, including China and South Korea. Demonstrating his positive stance on the sector, Dombrovskis suggested that ICOs had the potential to become a viable form of alternative financing.
“Already last year, ICOs helped raise over $6 billion in funding and this year this figure will be substantially bigger,” he noted.
Currently, the commission is working with European Supervisory Authorities on the “regulatory mapping” of digital coins, in order to solve the regulatory challenges that the sector presents.
“This will provide a solid ground to build on and to decide on further steps in this area,” Dombrovskis said.