Mairead McGuinness, who as a member of the European Commission is responsible for financial services, called for a single global regulation of cryptocurrencies. It wants to protect consumers and the environment. Cryptocurrency mining is energy intensive.
“Cryptocurrencies will become mainstream. More and more investors, including many young people, are flocking to cryptocurrency marketplaces, encouraged by social networks, promises of high returns or an open and innovative financial system. But investing in digital currencies is volatile and risky,” wrote Mairead McGuinness in an opinion column on The Hill.
Cryptocurrencies as a global phenomenon
According to the Financial Services Commissioner, cryptocurrencies are a global phenomenon and therefore it is not possible for the regulatory framework to differ from country to country. “I believe that together the European Union and the United States can lead the world towards a unified approach to regulating cryptocurrencies,” McGuinness wrote.
Why regulate?
If cryptocurrencies are not regulated, McGuinness said, consumers will take disproportionate risks and rely on incomplete information, ultimately losing money. Last but not least, the considerable environmental impact of cryptocurrency mining cannot be ignored.
