• European Parliament member Johan Van Overtveldt has called for a ban on cryptocurrencies, citing their lack of social or economic value.
• The Markets in Crypto Assets rule, which will create a regulatory framework for wallet providers and exchanges, is scheduled to be voted on by the Parliament’s 705 members as soon as next month.
• Belgian Central Bank Governor Pierre Wunsch claims that the beginning of the crypto winter last year was „excellent news“ for regulators of the traditional financial system.
Van Overtveldt Calls for Cryptocurrency Ban
Johan Van Overtveldt, a member of the European Parliament and former Belgian finance minister, has called for a cryptocurrency prohibition. Van Overtveldt made the statements as the European Parliament prepares to vote on the region’s landmark crypto licensing regulations. In response to turbulence in the banking industry, Van Overtveldt tweeted that authorities should enforce „a severe prohibition on cryptocurrencies“ since they are nothing more than speculative and have no economic or social value.
EU Set to Vote on Historic Crypto Licensing Regulations
The Markets in Crypto Assets (MiCA) rule is scheduled for a vote by the European Parliament’s 705 members as soon as next month. If passed, MiCA would create a regulatory framework for wallet providers and exchanges if they adhere to governance and consumer-protection norms. Van Overtveldt represents right-wingers in the Economic and Monetary Affairs Committee – 64 EU legislators – and served as Belgium’s finance minister from 2014 until 2018.
Belgian Central Bank Governor Reacts Positively to Crypto Winter
Belgian Central Bank Governor Pierre Wunsch sees last year’s crypto implosions positively, claiming it was excellent news for „the regulators of the traditional financial system.“ He also welcomed 2022’s predicted decline in cryptocurrency prices. Moreover, he believes that distributed ledger technology has huge potential to increase productivity within financial services sectors.
Crypto Regulation Pros & Cons
The pros of regulating cryptocurrencies include better consumer protection from fraudulent activities such as cyber crime and money laundering; increased security through proper data storage; improved access to payment networks; enhanced customer experience with faster transaction times; greater compliance with existing laws; and more transparency when it comes to taxation issues surrounding cryptocurrency transactions. On top of these benefits is also increased trust among investors who may feel more comfortable investing when cryptocurrencies are regulated by governments or other third parties like banks or exchanges. However, there are also some potential downsides associated with regulation including increased costs due to compliance requirements; limited innovation due to stricter rules surrounding development processes; diminished privacy concerns related to personal data collection; greater control by governments over currencies used by citizens; and possible centralization of power if large companies become too dominant within specific markets due to their size/market share advantages when compared with smaller players operating without regulation/oversight from government entities or other bodies like banks or exchanges (even if those entities are still subject to some form of regulation).
Regulation can bring both positive outcomes such as consumer protection and fraud prevention while also creating certain drawbacks such as increased costs associated with compliance requirements or even centralization of power among larger corporations operating within specific markets where they may gain an advantage due their size/market share compared with smaller players not subject to any form of oversight/regulation from governmental entities or other bodies like banks or exchanges (even if those entities are still subject subjection some sort of regulation). While Johan Van Overtveldt calls for an outright ban on cryptocurrencies due their speculative nature having no economic nor social value Belgian Central Bank Governor Pierre Wunsch welcomes cryptocurrencie’s “implosions” noting its “excellent news” for regulators looking after traditional financial systems stability . The EU is preparing currently preparing its historic crypto licensing regulations which will create a regulatory framework governing wallet providers & exchanges provided they comply with governance & consumer-protection norms set out by MiCA legislation