According to reports, the European Union (E.U.) is mapping out strategies that will focus on the development of crypto assets classification and regulatory mapping. This was revealed by the European Commission’s Vice President, Valdis Dombrovskis in a recent meeting that held in Vienna.
According to the Vice president, Crypto assets are bound to stay and expectations are that the crypto market will continue to grow despite the recent decline.
In an attempt to address some of the major concerns around crypto assets, the commissioner claims that the E.U. will focus on the major challenges which is how to “categorize and classify” crypto assets this year. He also went on state that the commission will consider if existing E.U. financial regulations can be applied or if there will be a need to enact new laws.
Furthermore, Dombrovskis stated that the commission has already partnered with European Supervisory Authorities in an attempt to develop a “regulatory mapping” of crypto assets which will further provide a firm platform to establish the status of cryptocurrencies.
In his statement, Dombrovskis paid special attention to Initial Coin Offerings (ICOs), categorizing them as an incredible funding source while also pointing out that ICOs generated over $6 billion last year. And in 2018, Dombrovskis believes the number will be substantially bigger.
Commenting on other problems related to crypto assets, Dombrovskis stated that one of the major risk of crypto is the lack of transparency which gives rise to money laundering, fraud and hacking.
To this end, he suggested that there is a need to keep monitoring the changes in the industry. And to achieve this, he stressed the importance of cooperation with global partners at the Financial Stability Board (FSB) and G20.
The FSB has recently stated that crypto assets do not in any way pose any risk to global financial stability but mentions that the crypto industry still need in-depth monitoring due to rapid market development.