Bitcoin alert from European Union

"Bitcoin and various other virtual currencies have serious risks in terms of investors and consumers," EU Commission Vice President Domrovskis said. Investors should realize that their value can fall at any moment. Bitcoin is not a real currency, "he explained.

"Bitcoin and other various virtual currencies have serious risks for investors and consumers," the European Union (EU) Commission Vice-President Valdis Domrovskis noted, noting that Bitcoin is not a real currency.

"The EU Commission closely follows developments in bitcoin and other crypto currencies," Domrovskis said at a press conference in Brussels, noting the recent developments in Bitcoin and virtual currencies. He said.

Noting that bitcoin and other various virtual currencies have serious risks in terms of investors and consumers, Dombrovskis noted that "these are serious price fluctuations, total loss of investments, and various operational and security vulnerabilities There are risks and shortcomings, such as openness to market manipulation, "he said.

"Investors should realize that their value can fall at any moment," says the value of Bitcoin not determined by any country or entity. Bitcoin is not a real currency. "

In the face of current developments in the markets, Domrovskis said the EU urged the financial control institutions and mechanisms to update their warnings against possible risks.

Investment Companies

"Our rules are also explaining the proposal to organize" investment companies "on the more effective audit of EU capital markets," Domrovskis
should be proportional and risk-sensitive. Small investment firms will take advantage of more simple conditions that fit more on their risk profiles, "he said.

Dombrovskis, the new arrangements to be taken into control of the European Central Bank (ECB) of investment companies larger than 30 billion euros operating in the eurozone and the smaller of the countries in their own competent authorities. . Domrovskis added that the new regulation would support good functioning capital markets and provide financial stability.

Around 6,000 investment firms are operating in the EU. These investment firms are currently being audited at the national level with the EU's rules for banks and legislation for securities markets.

A trilateral interview between the EU Council, the EU Commission and the European Parliament (EP) will be held to justify the proposal. After the parties agree on a text, the proposal will take effect after all institutions are approved. Then all EU member countries will have to perform the necessary arrangements.