The European Commission is keeping a close eye on Bitcoin markets urging EU banking and markets watchdogs to issue risk warnings to investors in cryptocurrencies, Reuters reported.
In statements at a news conference on Wednesday, European Commission vice president Valdis Dombrovskis expressed concern about the volatility in Bitcoin price, which has recently surged to as high as [FIAT: $20,000] then went through a slight correction to [FIAT: 18,000] and finally took a nosedive Tuesday as Coinbase added its rival Bitcoin Cash to [FIAT: $15,000.]
The European Union’s financial regulation chief VP in charge of financial stability, and financial services revealed Bitcoin had the authority’s “undivided attention.”
In the statement reported by Reuters, he stated:
“In recent weeks, Bitcoin has our heightened attention. There are clear risks for investors and consumers associated with price volatility, including the risk of complete loss of investment, operational and security failures, market manipulation and liability gaps.”
A report by the Financial Times reveals the official doing more than offering comments about cryptocurrency on a public forum, noting the official sent a written letter to banking and markets watchdogs in the European Union urging them to warn investors of the risks investing in cryptocurrencies.
Specifically, Dombrovskis’ letter was sent to the heads of EU’s three supervisory agencies – the European Banking Authority (EBA); the European Insurance and Occupational Pensions Authority (EIOPA) and; the European Securities and Markets Authority (ESMA).
“Let me remind you, the value of bitcoin is not guaranteed by any country or issuer… Investors should realise that it can drop at any moment. And virtual currencies like Bitcoin are not really currencies,” Dombrovskis added.
As Coinivore previously reported, the European Union itself has announced legislation for tighter controls on the world’s most popular cryptocurrency, Bitcoin, through trading exchanges and related businesses.
The European Union updated its landmark 2015 legislation, Fourth Anti-Money Laundering Directive, to include Bitcoin and related cryptocurrency businesses including wallets and exchanges after its two-year-old creation requiring company owners to register for easier access by EU authorities.
As a result, Bitcoin exchange platforms and ‘wallet’ providers that hold Bitcoin for clients will be required to identify their users.
Earlier this month the UK Treasury announced plans to regulate Bitcoin and other cryptocurrencies that also stated cryptocurrency traders would be forced to disclose their identities and report suspicious activity. While committee member John Mann said that the new rules will also be applied across European Union countries and “are expected to come into force by the end of the year or early in 2018, the minister in charge has said.”
Bitcoin is currently trading at [FIAT: $17,084.30] at the time of this report recovering from its plunge according to Coin Market Cap.
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