Bitcoin, Crypto currency, Blockchain

ECB Council refers to digital currencies as nonsense

37891b11b58e3cb5030b44f34445d4ba - ECB Council refers to digital currencies as nonsense

The relationship between crypto-currencies and the European Union is extremely complicated, and the recent Comments can no improvement be expected. While some other countries, Cryptocurrencies love, the EU is not really warm with you. While many other countries are driving the Mainstream Adoption of full speed ahead, making the bureaucratic hurdles and regulations within the EU, the crypto-currencies here is extremely difficult. Most of the cryptographic-related activities in the United States, South Korea and Japan. In Europe, there are only a few companies that deal seriously with Kryptos.

With more than 300 million inhabitants and the second biggest economy in the EU, however, is a heavy weight and can affect the way of how the industry is evolving.

Currently, the European Union chooses a decentralized approach for crypto-currencies, members of the EU cannot impose their own legal currencies. But the rules for crypto-currencies vary from state to state, and, therefore, of dealing with crypto-currencies differently in each country. It will be classified, for example, in Germany, as private capital, and there will be no capital gains tax, nor sales tax. However, crypto-currencies are subject to but the income tax, if a seller, the crypto currency held for less than a year (hodl).

In England will be differences from case to case, and crypto-currencies either as an asset or private money classified. Taxes on capital gains are levied on the trade with crypto currencies. But everywhere in the European Union, crypto-currencies are not subject to VAT. Further rules apply to cryptocurrency exchanges, which must be registered with their respective regulatory authorities such as the Federal financial Supervisory authority (BaFin), the French Autorité des Marchés Financiers (AMF) or the Italian Ministry of Finance.

In April 2018, the EU adopted the Fifth Directive on money laundering (5MLD), the currencies of the trading with Crypto in the EU rules to combat money laundering takes. 5MLD forcing the stock exchanges, KYC (Know your Customer) to comply with the regulations and to comply with certain Standard reporting requirements. The EU is also working on a single Supervisory authority, in order to develop better methods for determining the financial risks that the crypto-currencies. France has launched in September a regulation of ICOs (Initial Coin Offering) to become Europe’s first ICO-Hub.

Mediterranean seven

A group of 7 countries of the European Union to the “Mediterranean seven”, to the use of Blockchain technologies and to continue to develop. The collective consists of France, Malta, Spain, Portugal, Cyprus, Italy and Greece. Your main goal is to improve the training for a crypto developer to and use of the Blockchain technology in the areas of health, transport, basic books, company register, education and shipping expand.

This can not only lead to an improvement of electronic government services, but also to more transparency and less administrative burden, better collection, and better access to public information. Under the “Mediterranean seven” Malta is a leader in this area and is home to the largest crypto exchange Binance. Malta is the first country that offers a positive regulatory environment for all Blockchain-technologies and was able to convince so many companies and Start-Ups to move their companies set to Malta. With the advance of the “Mediterranean seven” Europe could finally get solid regulations and rules, in order to promote the Mainstream Adoption.

Recent Statements and Controversy

Ardo Hansson, the Governor of the Bank of Estonia and member of the governing Council, called Kryptos, “a lot of nonsense”. At the conference “Five years of the Euro” in Riga, Latvia, he said:

I think we are going to meet us in a few years, and ask ourselves how we could only ever in such a Situation, in which we have really believed in this fairy tale story.

He continued:

The bubble has already collapse started, and maybe we should see just how far this collapse, and what remains when we have reached a new equilibrium.

He also pointed to the need for investor protection, because the digital currency can be used for illegal activities. Hansson also supported the criticism of the President of the European Central Bank, Mario Draghi, at the introduction of Estonia’s national Cryptocurrency Estcoin. Draghi said at the time that there is only one currency for the Euro-zone, namely the Euro, and no member state can introduce its own currency, which has forced Estonia to the plans for Estcoin on 1. June 2018 to fall.

The European Union will focus on the development of crypto assets and corresponding regulations.

The Vice-President of the European Commission Valdis Dombrovskis is quoted in September. Dombrovskis said that crypto will continue to grow despite the recent setbacks. Also noteworthy is the fact that Estonia from the Blockchain page crypto slate at # 1 on the list of crypto-friendly country has been chosen.

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This article was from English into German:

Christian Rehm

Senior IT Consultant and Crypto Enthusiast always in search of interesting news.

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