Brussels-based economic research institute Bruegel has submitted a report to the EU Economic and Financial Affairs Council (Ecofin), proposing the establishment of a unified standard for cryptocurrency rules.
The report was presented at the recent “informal meeting of economic and financial affairs ministers” held from September 7 to 8, during which finance ministers discussed current policy issues relevant to economic and financial affairs, some of which related to crypto regulations. The report, at present, remains publicly unavailable.
As Ecofin outlined in its meeting agenda, “the first day will be devoted to the subject of cryptocurrencies,” where financial affairs ministers will discuss “the opportunities and the risks involved, and also a possible regulation of this global phenomenon.”
According to a recent Reuters report, Bruegel is calling for EU’s implementation of common regulations on cryptocurrency exchanges as well as Initial Coin Offerings (ICO’s). However, the think tank noted that regulating cryptocurrencies poses a number of challenges largely due to the digital assets’ decentralized nature.
Given such difficulty, Bruegel underscored that such regulations would instead have to be applied to crypto related firms, including crypto exchanges and mining operators. The report also cited China’s previous crackdown on crypto miners, adding that it is also possible to ban cryptocurrency mining operations.
The news follows on the heels of a previously held meeting among legislators in the European Parliament to thresh out the standardization of rules governing ICOs in adherence to crowdfunding regulations.
To that end, European Parliament member Ashley Fox has drafted a proposal outlining the approach for standardizing ICO regulations to be adopted by the EU and select nations. If approved, the regulation would allow startups to launch crowdfunding projects and operate in each of the EU’s member nations, instead of only being limited to the location in which they are headquartered.