The European Committee of Economic and Monetary Affairs recommends regulatory approach to digital currencies

During the last couple of months, government organisations and financial institutions have been in the process of developing regulatory framework for digital currencies and the blockchain technology.

According to recent reports, it seems like the European Parliament’s Committee on Economic and Monetary Affairs, also known as ECON, is in the process of closely examining the technology while also listing its opportunities and risks.

To put things better into perspective, the ECON has released its very own report on the state of virtual currencies and distributed ledger technology and is now calling for further regulatory approach at the EU level. According to their report, the ECON wants to see digital currencies and the blockchain succeed, but also wants to ensure that its success does not stifle innovation, or add high costs to the platforms which are still in their early stages.

Together with this, the ECON also agreed with the European Commission’s idea to include digital currency exchange platforms into the Anti-Money Laundering Directive. By doing so, the anonymity associated with the platforms will be eliminated, as an effort to discourage money laundering and other financial crimes.

The ECON also recommended the European Commission to come up with a comprehensive analysis of the current digital currency trends and to create a task force, consisting of regulatory and technical expert that will be in charge with providing precious expertise when it comes down to drafting the legal framework.

In return, while the effort will further promote the technology across the European Union, chances are that many of its adapters will be unsatisfied with the new regulations as this leads to government control, which is the opposite of what digital currencies advocate for.

Based on everything that has been outlined so far, what do you personally think about ECON’s ideas? Will these be put into practice? Let us know your thoughts in the comment section below.

Source: European Parliament

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