European regulators warn of financial risks from American crypto integration

European regulators are concerned about the growing harmonization of the American financial policy and the creptic industry, warning that the heating ratio could present risk factors to global financial markets.

According to European Securities and Market Bodies (ESMA), closer links between traditional financial and digital means can lead to higher exposure if they fail to protect the protection market.

“CRIPTO (Currency) -Frian position has the potential to speed up the adoption of cryptocurrency, including institutional investors,” Esma spokesman said. “This in turn would increase mutual connection and, unsuccessful relevant protective measures, risks from negative influences between cryptocurrency and traditional markets.”

From his inauguration 20. January, American President Trump took steps to redefine the access to the federal government with digital property. Among the key actions taken, because there were orders for the establishment of strategic reserves Bitcoin Bitcoin seized by criminal and civilian subtraction.

It was framed as a long-term store, the reservation is intended to insure digital property under the custody of the Government. The administration also appointed federal departments with researching cost neutral strategies to expand the reservation without affecting the state budget.

It is parallel, Trump has signed an executive order promoting a more favorable regulatory environment for the US Cryptocurrency activity. The command seeks to protect software programmers, cryptocurnent miners, validators and other participants who engage in legitimate cryptocurrency transactions and prohibits federal agencies to progress in the Central Bank’s digital currency (CBDC). Previous policies related to cryptocurrency is also disabled and appoints a working group, which chaired the cryptocurrency of the administration and advisors, to review and potentially revised existing regulations. The group is expected to submit initial recommendations in the next six months.

Although the cryptocarnence market initially reacted to the increase in value – Bitcoin has briefly touched the amount of $ 109,000 – the details of the details have only included the Government, and that the state is not only planned.

A ESMA (PDF) Joint ReportEuropean banking administration and European insurance and insurance and professional pensions on Monday, stated “volatile evaluations of crypto-means, guided by the expectations of American Deregulatory Policies” as one of the factors affecting market conditions. The report also noted increased links between cryptocurrency and traditional financial institutions.

In related remarks, a member of the Executive Board of the European Central Bank (ECB) Peiro Cipollone renovated calls for digital euro, expressing concern over the influence of foreign stablecoin and pay platforms in the region. He stated the dominance of payment funds based on American salaries, Google Pay, Paypal, warning that reliance of Europe on such providers could make the continent be vulnerable to external economic pressures.

Identifying these concerns, ECB’s Filip Lane economist explained that the digital euro could help the eurozone to preserve its monetary independence offering the payment option under European management. Lane pointed out that 99% Stablecoin market is currently related to the American dollar, which raises the risk of financial systems of the euro areas become indirectly related to foreign currency dynamics in foreign currency. The digital euro, claimed, could also help unify fragmented registration systems and reduce dependence on non-European infrastructure.

Lane also noted that American efforts to maintain global dominance of dollars – especially through the growing role of stablecoin – represents additional challenges for the European Monetary Framework.

See also: The World Network itself in Talks with Visa on Cryptocurrency Wallet Integration

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Tags: Bitcoin, hi, cryptocurrency, US CRIPTO regulation