On Monday, European Union financial services head Valdis Dombrovskis suggested that the EU is prepared to step in and regulate cryptocurrencies if the world fails to properly respond to existing risks posed by the sector. Dombrovskis spoke to reporters in the aftermath of a roundtable discussion, and said that action was needed to reduce cryptocurrency risks:
“This is a global phenomenon and it’s important there is an international follow-up at the global level. We do not exclude the possibility to move ahead (by regulating cryptocurrencies) at the EU level if we see, for example, risks emerging but no clear international response emerging.”
According to Reuters, the EU will likely decide on a course of action before early 2019. Meanwhile, the next gathering of G20 nations is scheduled to take place next month in Buenos Aires, and the issue of cryptocurrency is expected to receive considerable attention. However, few observers expect the G20 meeting to produce any solid consensus for regulating the crypto industry.
The European Union, like other government bodies around the world, has been somewhat cautious in its response to the cryptocurrency revolution. While some officials have forcefully called for increased regulation to limit digital currency’s use in illicit activities, most have been reluctant to move too fast for fear that excessive regulation may stifle innovation.