EU Finance Commissioner Valdis Dombrovskis committed on Tuesday to propose new rules governing virtual currencies in response to Facebook's plans to introduce LibraCoin, which the EU considers a threat to financial stability.
“Europe needs a common approach to crypto-assets such as LibraCoin. I intend to propose new rules in this area,” Dombrovskis told Reuters.
The European Union has no specific rules on cryptocurrencies, which until the announcement of Libra in June were considered by most decision-makers a marginal issue because only a small part of bitcoins and other cryptocurrencies were converted into euros.
Dombrovskis said that the cryptocurrency regulation should focus on defending financial stability, protecting consumers and countering the risk of money laundering using cryptocurrencies that can easily cross borders.