Johan Van Overtveldt, a former Belgian finance minister and member of the European Parliament, Van Overtveldt has called for a ban on crypto in light of the recent banking sector upheavals.
His statements come at a crucial time as the European Parliament prepares to vote on new regulations for the licensing of cryptocurrencies across the bloc.
In a tweet, he emphasized that crypto assets were nothing more than speculative investments that held no real economic or social value, drawing parallels between their regulation and the ban on drugs.
Van Overtveldt’s statements come amidst mounting concerns over the failure of crypto-friendly banks, such as Silvergate Bank and Silicon Valley Bank, which have triggered a domino effect that is now being felt across global markets.
European banks, such as Credit Suisse, have been particularly hard hit, with shares hitting record lows and requiring emergency funding from the Swiss National Bank to avoid collapse.
Policymakers are scrambling to Minimize Damages
As policymakers scramble to mitigate the damage, the European Parliament is set to start voting on numerous crypto licensing rules.
Van Overtveldt’s call for a ban on cryptocurrencies may be controversial, but it highlights the growing sense of unease among regulators and lawmakers regarding the lack of oversight and regulation in the crypto space.
With the stakes so high, it remains to be seen whether policymakers will take decisive action to ensure the stability and security of financial markets in the face of this ongoing crisis.
Johan Van Overtveldt is a prominent figure in European politics, serving as the economic spokesperson for the right-wing European Conservatives and Reformers.
With a background as Belgium’s finance minister from 2014 to 2018, he brings a wealth of experience and knowledge to the Economic and Monetary Affairs Committee, where he is currently based.
Van Overtveldt is an Advocate for Blockchain Tech
Despite his recent call for a ban on crypto, Van Overtveldt has been an advocate for blockchain technology, leading the Parliament’s work on a new law to allow the trading of securities based on distributed ledger technology.
He believes that the technology underpinning crypto has great potential to improve productivity and streamline processes, even as he warns of the dangers of unregulated speculation in the crypto space.
With the Parliament set to vote on the Markets in Crypto Assets regulation, which will offer a regulatory framework for digital-wallet providers and exchanges, Van Overtveldt’s views are likely to be closely scrutinized.
As a representative of a political grouping dedicated to individual liberty and limited government, he brings a unique perspective to the table, and his input will be vital in shaping the future of crypto regulation in the European Union.
It all started with the SVB Collapse
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The recent implosion of Silicon Valley Bank has sent shockwaves throughout the tech industry, prompting a flurry of finger-pointing and blame-shifting from executives and investors alike.
Amidst the chaos, however, some crypto advocates have seized on the crisis as an opportunity to promote their vision of an alternate financial system, one that is free from the centralized control of big banks and other gatekeepers.
According to these advocates, the collapse of Silicon Valley Bank is proof of the fragility of traditional currencies and the need for a more decentralized approach to finance.
They argue that government regulators, who have recently cracked down on crypto firms, bear some responsibility for the bank’s downfall, as their heavy-handed approach has pushed investors towards alternative, more resilient assets such as Bitcoin.
While the crypto community’s response to the Silicon Valley Bank crisis may seem opportunistic to some, it reflects a broader trend towards decentralized finance and the increasing popularity of crypto as an alternative to traditional banking.
As the financial landscape continues to evolve, it remains to be seen whether these new, decentralized systems will ultimately prove more resilient and sustainable than the old, centralized models they seek to replace.
David Anderson is a writer and researcher for Copy Trading Critic. David provides comprehensive news articles from the online trading world. He also writes reviews and analysis of copy trading platforms and strategies.