European Union considers that blockchain technology has a bright future in the region

eBitcoinics News   17 Apr, 2019   news.eBitcoinics.com   Views: 342

The head of the blockchain unit of the European Union (EU), said that the technology of the blockchain has a bright future in the region. This was made clear at the Summit of the Blockchain week in Paris.

Peteris Zilgavis, the head of new companies and the innovation unit (which includes the blockchain) in the EU commission, said that cryptocurrencies has enormous potential, as long as the problems of money laundering and fraud are addressed.

However, the EU is still discussing the classification of cryptocurrencies as values, either to fit within the current legal framework or to be exempt and require new ones. And, currently, securities in the EU are defined as "financial instruments" and have a series of legal requirements and strict controls on who can issue and buy them. However, these laws were not designed taking into account cryptocurrencies and there are different opinions on how the current framework should be applied to a new technology.

What it does not have room for doubt is that the fact that the current framework is causing headaches for startups that are dedicated to the crypto industry.

In case you decide to create a new legal framework, it should look to the future and allow the ICO and STO market to flourish while encouraging the tokenization of existing assets, such as stocks and bonds. This is what Gundars Ostrovskis believes, the chief economist of the EU commission, admitted as such on stage.

The EU has been showing support for blockchain technology, either by creating institutions to boost its development or by investing in it. However, historically the EU has been characterized by bogging down every industry with bureaucracy and regulations, so perhaps interest by the European bloc is a double-edged sword


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