European Union is open to cryptocurrency with modest regulations
Credits: KryptoMoney

European Union is open to cryptocurrency with modest regulations

European Union is open to cryptocurrency with modest regulations, said by the Union commissioner at the Munich Security Conference on Friday, attended by the CEO of FTX, Sam Bankman-Fried, and Christian Angermayer, cofounder of the Crypto Asset Group.

The conference is an annual gathering in Munich, Bavaria, to address international security policy. Western plans to counter the amassing of Russian troops on the Ukraine border and the battle against climate change were two significant issues discussed during the conference. Cryptocurrency was also part of the discussions.

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European Union Commissioner for Home Affairs said that the European Union is open to digital assets in the presence of fraud-preventing regulation.

His statement made clear that Europe is more receptive than China, which recently moved to ban all cryptocurrency transactions.  Johansson said she appeared to be the “party pooper” on the security conference’s panel by stressing regulation and fraud prevention.

The panel was also attended by Sam Bankman-Fried, chief executive officer and co-founder of cryptocurrency exchange FTX, and German entrepreneur Christian Angermayer, who co-founded asset manager Cryptology Asset Group.

She added, “I’m not uncomfortable with digital currencies, but we need to regulate them in a proper way” to prevent criminals and terrorists from taking advantage of the anonymity digital currencies provide. By her statement, Johansson clarifies that they disagree with China’s stance. Although some Swedish regulators are looking to ban proof-of-work mining, there is no imminent ban in Europe.

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Deputy Attorney General Lisa O. Monaco also spoke at the conference. She said that the Federal Bureau of Investigation (FBI) is investigating ransomware and the abuse of cryptocurrency. In 2021, the Ransomware and Digital Extortion Task Force were established. The FBI seized 2.3 million of the ransom paid following the Colonial Pipeline attack.

The FBI is also forming a team designated to operate in the cryptocurrency space. The group is called the Virtual Asset Exploitation Unit (VAXU). This FBI unit will gather crypto experts to use equipment, blockchain analysis, virtual asset seizure, and training to the FBI. This unit will work with the National Cryptocurrency Enforcement Team (NCET).

Bankman-Fried acceded that criminals can use cryptocurrencies and emphasized that digital currency exchanges have fortified oversight procedures.

Angermayer didn’t pull his punches. He believes that conventional banking institutions often leave billions of people out in the cold. They “often protect their own interests,” the CEO said. He opined that the unbanked billions in the world could be helped by the flurry of blockchain technologies embedded in cryptocurrencies.