In a written response to MEP Roberta Metsola (EPP, Malta), published on Wednesday 28 August, the European Commission has affirmed that it is closely following the evolution of Facebook's Libra stable cryptocurrency project and, more broadly, is continuing its assessment of the EU regulatory framework to determine whether it is suitable for cryptocurrencies.
Since its announcement, the Libra project has raised serious concerns (see EUROPE 12278/21). So much so that, on 12 July, the Maltese MEP tabled a written question to the Commission asking what measures it planned to take to adequately protect citizens while promoting this type of innovative technology. In August, other MEPs tabled written questions to the ECB on this subject (see EUROPE 12310/31).
In its reply, the Commission states that it is assessing the risks of this project with regard to financial stability, monetary policy, data confidentiality and money laundering.
“The Commission is carrying out a preliminary assessment in cooperation with ESMA and EBA of the legal nature of Libra and the authorisation(s) it subsequently may have to seek under EU law, in order to ensure the protection of EU citizens”, it wrote.
More broadly, it recalls that, on the basis of the opinions received from the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) in January 2019 (see EUROPE 12168/9), the Commission is currently carrying out an assessment of European legislation (see EUROPE 12229/33).
For crypto-assets that are covered by EU rules, it examines whether the legislation hinders innovation and is appropriate for their use. For types of crypto-assets that are not covered, the Commission is internally evaluating “the benefits of a common regulatory approach at the Community level, in particular to ensure consumer protection”, it explains.
Both evaluations should be ready by April 2020, it said, adding that any action in this area would be the responsibility of the new European Commission. (Original version in French by Marion Fontana)