BRUSSELS: The European Union's finance commissioner pledged on Tuesday, if if he is reappointed, to propose new rules to regulate virtual currencies such as Libra, the currency Facebook plans to launch.
"Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this," Valdis Dombrovskis told EU lawmakers in his confirmation hearing. The EU currently has no specific regulations on cryptocurrencies, which, until Libra was unveiled in June, had been considered a marginal issue by most decision-makers because only a tiny fraction of bitcoins or other digital coins are converted into euros.But Facebook's plans have triggered a rethink, and the EU is now also pushing the G20 for global action on digital and crypto currencies.
He said the new rules should focus on defending financial stability, protecting consumers and tackling the risks of money being laundered using crypto-assets, which can cross borders with ease.