European Union Is Open To Cryptocurrency, But With Regulations, Says Home Affairs Commissioner

Europe could be the most significant global market for cryptocurrencies backed by regulators, albeit with defined rules, offering a fresh respite from China's ban.

Speaking at the Munich Security Conference 2022 on Friday, European Union's Commissioner for Home Affairs Ylva Johansson said she is not against cryptocurrency. Still, she expects regulations to be put in place to prevent criminal actors and terrorists from exploiting its anonymity.

Johansson said, "I'm not uncomfortable with digital currencies, but we need to regulate them in a proper way."

During the discussion on crypto regulation and cybercriminal activities in the crypto business at the conference, she said Europe is more accommodating to digital currencies than China. The conference was also attended by FTX CEO Sam Bankman-Fried and Christian Angermayer, the Crypto Asset Group creator.

Earlier, Johansson said the European Union is open to digital assets in fraud-prevention regulations.

Johansson explained she disagrees with China's attitude towards digital assets. Although some Swedish regulators are considering a ban on proof-of-work mining, no Europe-wide such restriction is forthcoming.

Bankman-Fried acknowledged that criminals could utilize cryptocurrencies but stressed that digital currency exchanges had strengthened control measures.

Angermayer did not hold back on his arguments and added that traditional banking organizations frequently leave billions of people in the cold. According to the CEO, they "often protect their interests."

He said that the buzz of blockchain technology embedded in cryptocurrencies might aid the world's unbanked billions.

Meanwhile, U.S. Deputy Attorney General Lisa Monaco said the campaign against cryptocurrency criminality is being ramped up in the U.S.

Monaco said that the FBI looks into ransomware and cryptocurrency abuse. The Ransomware and Digital Extortion Task Force was established in 2021. Since then, the task force retrieved $2.3 million in ransom money following the Colonial Pipeline incident.

The FBI is also putting together a squad to operate in the cryptocurrency industry. The unit is known as the Virtual Asset Exploitation Unit (VAXU).

Monaco also announced the formation of an International Virtual Currency Initiative to combat digital currency fraud. More international law enforcement coordination will be possible due to this endeavor.

Each year, the conference is held in Munich, Bavaria, to discuss international security policy. This year, cryptocurrencies were included in the agenda.