As crypto assets like Facebook's Libra may threaten the financial stability, they should be regulated in the European Union, Valdis Dombrovskis, the incoming European Commission Executive Vice-President responsible for the finance affairs of the Block, told lawmakers in the European Parliament.

Dombrovskis pointed out that the EU is currently working on a regulatory framework forcrypto assets, adding that the impact of these virtual coins should be examined on a series of areas including financial stability, monetary stability, data protection and anti-money laundering.

"We will need to regulate Libra to supervise it on EU level both from the point of financial stability and protection of investors as well," Dombrovskis said, quoted by Bloomberg.

The Facebook's plans to introduce Libra in 2020 are opposed by regulators throughout the globe, including the European Central Bank (ECB). Recently the ECB Executive Board member Benoit Coeure described the Libar project as “a wake-up call.’’

Earlier this year the European Commission started work on new regulations regarding the crypto assets, which still remain largely unregulated. The lack of regulation “leaves investors exposed to substantial risks”, Dombrovskis added.

The risks for the financial system will be especially acute with Liba, because of the enormous customer base Facebook currently have.

“If crypto currencies become widely used, they could pose a threat to the monetary sovereignty’ of nations”, as well as the financial stability, Benoit Coeure of ECB commented earlier.