European Parliament Report Proposes Task Force on Digital Currencies

A new European Parliament draft report on digital currencies calls for the creation of a task force specifically devoted to the technology.

AccessTimeIconFeb 25, 2016 at 6:22 p.m. UTC
Updated Sep 11, 2021 at 12:09 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A new European Parliament draft report on digital currencies calls for the creation of a task force specifically devoted to the technology.

The report, penned by European Parliament member (MEP) Jakob von Weizsäcker of the Committee on Economic and Monetary Affairs, seeks the establishment of a task force, with its own budget and dedicated staff, that would study digital currencies and provide policy advice to the European Union and member-states.

Further, the report calls for tightening regulation of both exchanges and wallet service providers – something the European Commission, the bloc’s executive arm, is already considering. At the same time, the European Council is also weighing digital currency regulation.

The publication of the report follows a hearing in late January during which MEPs discussed bitcoin and blockchain technology within the context of terrorist financing and money laundering.

Despite the calls for stronger rules in regards to digital currency activity, the report notes that the technology has "the potential to contribute positively to consumer welfare and economic development". It goes on to echo comments made by von Weizsäcker during the January hearing about avoiding burdensome regulation.

"[The European Parliament] calls for a proportionate regulatory approach so as not to stifle innovation at an early stage, while taking seriously the regulatory challenges that the widespread use of [virtual currencies] and [distributed ledger technology] might pose," it states.

At the same time, the report seeks approval for what it calls "rapid and forceful regulatory measures", stating:

"But such a smart regulatory regime based on analytical excellence and proportionality must not be confused with light touch regulation: rapid and forceful regulatory measures need to be part of the toolkit in order to address risks before they become systemic if and when appropriate."

The Committee on Economic and Monetary Affairs is expected to vote on the report’s contents in April, and if approved, could move to the full Parliament for a vote as early as May.

The full report can be found below:

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.