HELSINKI (reuters) – The European Union needs to provide a common set of rules for the virtual currency, which is currently largely unregulated in the block, against the risks of Facebook ” s cryptocurrency Scale, the French Finance Minister, said on Friday.
FILE PHOTO: the Statements of the Ripple, Bitcoin, Etherum and Litecoin are virtual currencies that can be used to show it on a PC system board in the illustration, the picture, February 14, 2018. REUTERS/dado Ruvic/Illustration
The 28-nation EU does not have specific legislation on cryptocurrencies, which have hitherto been regarded as a marginal problem by the majority of policy-makers, because only a tiny fraction of the bitcoins or other digital currency are converted into euro.
However, the plan was unveiled in June, the US social media giant Facebook to launch its own digital currency, the balance, for payments to, among, the hundreds of millions of people in Europe and around the world have led to a re-evaluation.
Libra may lead to a risk to consumer safety, financial stability, and even the sovereignty of the states, of France, Bruno Le Maire, told reporters at a meeting of EU finance ministers in Helsinki, finland.
He reiterated his call for the blocking of the monitor in Europe, called for the establishment of a common framework on digital currencies in the EU.
The new EU rules came into force last year, is to increase the control of the virtual-currency dealing platforms for the purpose of reducing the risk of money laundering and other financial crimes.
A LEGAL NO-MAN’S LAND
But, with the exception of the virtual currency to move into what is essentially a legal no-man’s land in the EU, as regulators have not yet been able to agree on the question of whether they are to be treated as securities, payments, services, or currency itself, the latter option is ruled out by the majority.
In the absence of specific regulations, the EU officials have been assessing whether the current rules on financial instruments would be effective, but as yet have reached no conclusion.
When asked whether the Scale would have to have a license in order to operate within the building, a spokeswoman for the european commission, told Reuters: “based on the information that is publicly available on the monitor, at the moment it is not possible to say which of the EU’s rules, it should have been.”
“It is likely that the project will require some form of authorization in Europe and, depending on the exact of the features,” she added.
In Switzerland, the Scale is filling out an application for a payment service license, even though it may be confronted by rules that would normally apply to the banks and the regulators in the EU, the Alpine state, saying on Tuesday.
The EU-wide legal vacuum that has opened the way for smaller member states, in order to fill it. Small size of Malta, as the host of the block, the world’s largest online gambling industry and the financial sector has devised its own framework, and to attract virtual currency operators.
It is unclear whether or not Malta, and that the smaller EU member states, agreed with Le Maire and his tough stance on the bathroom Scale, and cryptocurrencies.
Le Maire said the bloc should work to cut the cost of cross-border payments, which are Scales that promises to slash.
However, an eu-wide plan to develop an instant, affordable payments slow to take off.
Real-time payments may be made in the euro zone since the march of 2017, however, only around half of the bloc’s banks have joined the system, which is at the core of these operations, and is primarily used for domestic payments.
Le Maire also said Europe should be considered “a public digital currency” that could challenge for a Libra. He also said that he would discuss this issue with the minister and other ministers the following month.
Reporting by Francesco Guarascio; Editing by Kim Coghill and john Harvey