Will the EU Not Regulate Investments in Crypto Before 2023?

The CNB and the Association for Blockchain and Cryptocurrencies (UBIK) are currently calculating the risk of investing in cryptocurrencies. They are forecasting the risk of currencies controlled by central banks. They believe that before 2023, no regulations in the EU will exist concerning investments in cryptocurrencies.

Apart from the financial community and experienced investors, the general public actually knows very little about it; It is known that bitcoin, Ethereum, and other virtual currencies rise and fall like on a carousel, but the same thing has been seen countless times in the depreciation of national currencies, the crash of the Swiss franc, the Russian ruble, the Turkish lira…

The CNB explains that central banks of individual countries or unions of nations (EU) create “central bank money”. Monetary policy instruments govern central bank money to maintain low and stable inflation. Simply put, the central bank is trying to maintain stable prices. Mainly, so that what is available in the wallet is worth the same today and tomorrow, explains CNB.

Central bankers warn there is no coverage, support, or guarantee from any public body or competent institution for cryptocurrency. They say an investment in a decentralized system without any background value, without an identifiable issuer, and with a limited offer. It has no regulation, nor is there consumer protection.

As a counter-argument, the other side “takes out” numerous cases in which the regulator did not protect consumers even from the oscillations of central bank currencies – a striking example is the case of the franc. Regulations are vital for everything concerning money. But he is not doing that yet, nor at the EU level. The legislative proposal of the Regulation on cryptocurrency markets became adopted by the European Commission in September 2020. However, until 2023 there are no plans of enforcement.

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