The European Commission, the executive body of the European Union, reported that it is closely examining the cryptocurrency markets, urging investors to issue risk warnings for EU banking and market research.. The Commission is expressing its concerns about Bitcoin prices.
At a press conference on Wednesday, European Commission Vice-President Valdis Dombrovskis called the volatility of Bitcoin prices “alarming”.. The official—the European Union’s chief financial officer as vice president of the financial stability, financial services, and capital markets association—came the attention of the authority to the bitcoin market.
In a statement to Reuters,
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Our attention to Bitcoin has increased in recent weeks. There are clear risks for investors and consumers associated with price fluctuations such as complete loss of investments, operational and security failures, market manipulation and liability gaps in this area.
In a report published by the Financial Times newspaper, He said the official did more than just give a speech about a public forum, urging them to warn in a letter to banking and market watchers that cryptocurrency investments in the European Union are risky.
Inform All EU Institutions
In particular, Dombrovskis’ letter is addressed to the heads of the EU’s three supervisory authorities, namely the European Banking Authority (EBA), the European Insurance and Vocational Pension Agency (EIOPA); Sent to the European Securities and Markets Authority (ESMA);
Dombrovskis, in a statement to reporters, added:
Remember, Bitcoin’s value is in any country or country. cannot be guaranteed by the issuer … Investors should understand that its value may decrease at any time. Virtual currencies like Bitcoin are not real currencies.
European Commission Holds Bitcoin Prices Tight
As previously reported, the European Commission first He proposed strict rules regarding the use of cryptocurrencies in July 2016.. The legislation led to the inclusion of digital currency exchange and wallet providers covered by the Anti-Money Laundering Directive (AMLD). The executive body also proposed a central database to record the identity information of Bitcoin and cryptocurrency exchanges.
Many institutions around the world are taking different approaches.. While some are concerned like the EU, some country officials are making promising sentences about Bitcoin prices and its future.
CCN