European Union Is Unclear In Decidng Libra’s Future
By Tyler Smith – Cryptocurrency Expert
The same questions are stumping Governments all over the world when it comes to comprehending cryptocurrency trading. Do they impose strict rules & regulations and threaten the economy with loss of benefits, or do they do very little and risk exposing themselves to those driving the progress in the space? These questions have been receiving more attention lately due to the release of Facebook’s own digital currency, Libra. The European Union is currently in a bit of a puzzle on how to move forward with crypto asset management guidelines.
Libra and the European Union
On behalf of the European Commission, Executive Vice-President Dombrovskis released a statement declaring that the Libra Association has not been transparent enough in their responses to the EU. He goes on to say that the information currently given by Facebook “remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law.” Conversely, Dombrovskis also went on to establish the EU as a body “willing to act swiftly” regarding the momentum of crypto market investment by employing regulations where necessary.
Digital Currency regulations stir interest in the United States
The CEO of Facebook, Mark Zuckerberg, reportedly provided unsatisfactory answers while speaking to the United States House of Representatives Financial Services Committee on 13th October’ 2019 about his platform’s digital currency. Some lawmakers were even concerned enough to comment that they “don’t know if Libra is going to work.”
Though the future of Bitcoin trading and Government regulations are currently uncertain, institutional and traditional bodies in both the United States and the EU are looking for a better grasp on these digital assets and their place in society. The Commission initiated an open and public examination on this topic that will be available until March 19th 2019, alongside the Internal Revenue Service in the US who are assembling a cryptocurrency summit on March 3rd.