European Union is gathering to discuss cryptocurrencies – sees both risks and opportunities

Cryptocurrencies like bitcoin have become very popular over the past year. They have created a new market that has brought new opportunities that did not previously exist, but also new risks for investors.

Now, European politicians are trying to understand and regulate the growing cryptocurrency market.

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Meeting in Austria

On the seventh of September, economic and financial ministers from European countries will go to Vienna in Austria to discuss risks and opportunities that come with cryptocurrencies.

According to a document that the news agency Bloomberg has taken part of, the ministers will discuss tax evasion, terrorist financing and money laundering linked to cryptocurrencies. They will also talk about ICOs (initial coin offerings) and how one can regulate these.

“Effective and efficient way to raise capital”

Earlier, the European Securities and Markets Authority (ESMA) has warned investors for ICOs and trading on unregulated markets. ESMA has pointed out that there is a greater risk for people trading on unregulated markets compared to regulated ones and that investors are not protected by the EU’s financial regulations.

The European Commission has said earlier that they are following the development and that they are ready to act if necessary. At the same time, the EU wants to take advantage of the new technology of cryptocurrency. They noted that, among other things, ICOs “have established an effective and efficient way to raise capital”, according to the document Bloomberg has taken part of.

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