Brussels-based think tank Bruegel has come up with an informal meeting from European Union in order to regularize cryptocurrency exchanges and Initial Coin Offerings (ICOs).
The main motive of EU Regulations is to control risks and harness the potential of the blockchain technology. The meeting will be held in Austria from September 7-8.
Bruegel stated that it is difficult to regularize Bitcoins because of their virtual nature. The organizations who are operating the cryptocurrency trading platforms can face strict rules or even a potential ban. The Chinese approach towards a regularization of the cryptocurrency market is stated “as done in China, mining farms can be forbidden,” according to a report by Cointelegraph.
Due to a low percentage of trade in Bitcoin into euros has made European Authorities to avoid a comprehensive regulation. Moreover, they are worried about the market integrity and money laundering.
However, there is a great chance of growing interest in Initial Coin Offerings (ICOs) and expansion of cryptocurrency exchanges in European Nations. The regulators compelled to take a closer look at these points.
The market capitalization of cryptocurrency and crypto tokens issued for an ICO that has dropped around $200 billion in August, whereas in January it was more than $800 billion. Bitcoin has plunged 60 percent against US Dollar this year.
It is reported that many cryptocurrency trading platforms are looking for an official power to make legal decisions and judgments with a lighter regulation perhaps need to be tolerated for some time in order to learn and experiment about the best approaches related to fast-developing technology.
Binance, one of the world’s largest cryptocurrency exchanges, planned to move to Malta after China eliminated the cryptocurrency business. Bruegel said, “might suggest that there is scope for regulatory arbitrage” following a crackdown on cryptocurrency trading platforms in some Asian countries, according to a report by Reuters.