Regulation of Crypto-Assets – Part II: Cryptocurrencies and Utility-Tokens (cepPolicyBrief COM_2020_593)
Bitcoin is on the rise. The European Commission has therefore presented a proposal for a Regulation to regulate cryptocurrencies. Before the Commission's proposal is finally approved by the European Council and the European Parliament, the Centrum für Europäische Politik (cep) reports a need for change.
The Freiburg-based think tank considers the plans from Brussels so far to be half-baked. "Certainly, a uniform set of rules makes sense in order to ensure legal certainty in this rapidly growing market. But the planned EU Regulation does not provide this in one relevant point. Many cryptocurrencies have no central issuer. Whether they will be covered or even banned by the new Regulation in the future remains unclear," says cep expert Philipp Eckhardt. The economist from the Freiburg-based think tank, together with cep lawyer Dr Martina Anzini, has presented an cepPolicyBrief and cepInput on the Brussels proposal.
Cryptocurrencies such as Bitcoin are designed in a decentralised way and do without a central issuer. "Issuerless cryptocurrencies are likely to remain relevant in the future and will not be stopped by the EU Regulation. It is therefore regrettable that the Regulation does not bring about legal certainty here," says cep expert Dr Martina Anzini.