The nominee for the next Finance Commissioner of the European Union, Valdis Dombrovskis, said that he intends to propose a unified approach to cryptocurrencies, quoting Facebook’s Libra. This comes soon after the project saw one of its key backers leave the Libra Association.

EU To Propose Unified Cryptocurrency Regulations

The legislation governing cryptocurrencies in the EU is a hot topic among institutions, investors, and the regulators themselves. It’s clear that virtual currencies are already on the stage and they’ve made their entry, and it’s now more than ever important to have a clear regulatory framework that provides much-needed clarity for those wanting to get involved with them.

This became especially so after Facebook announced its intentions to launch its very own stablecoin dubbed Libra.

Now, the nominee for the next Finance Commissioner of the EU, Valdis Dombrovskis of Latvia, said that he intends to provide a unified approach to regulating cryptocurrencies.

“Europe needs a common approach to crypto-assets such as Libra. I intend to propose new legislation on this.” – He said in his confirmation hearing.

He also said that by regulating cryptocurrencies, the EU should be tackling “unfair competition, cybersecurity, and threats to financial stability.”

It’s Getting Pressing

It’s perhaps safe to say that regulations are, indeed, needed. We can already see the toll that the lack of clear statutes has on serious projects like Facebook’s Libra.

Countries such as Germany and France have openly said that they will go ahead and try to block the project as it undermines the financial stability of traditional systems. On the other hand, we have the UK, which took the opposite position. As CryptoPotato reported, the UK’s Head of Treasury, Philip Hammond, said that the country won’t try to stop the project but rather to regulate it in light of its transformative potential.

This uncertainty has already caused the project quite a bit as the community is getting more and more skeptic about its launch and so are its backers. PayPal recently withdrew from the Libra Association and said that it doesn’t intend to rejoin.

In any case, given the overall unified regulatory framework within the EU, it makes sense that cryptocurrencies should be governed in the same manner.

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