On Wednesday European Commission Vice-President Valdis Dombrovskis warned in a letter to the heads of three financial EU regulators to urgently update financial rules in order to face high volatility of bitcoin.
Valdis Dombrovskis, a former Latvian prime minister, also urged to improve the applicability of regulatory framework to bitcoin and cryptocurrencies. He added that the agencies must draw up new plans in light of the recent market developments.
The developments relating to bitcoin and crypto-currencies in recent weeks require our heightened attention. There are clear risks for investors and consumers associated to price volatility – including the risk of a complete loss of investment, operational and security failures, market manipulation, and liability gaps.
Vice-President, European Commission
We have reported that in the beginning of December the British government announced its plans to introduce strict regulations of bitcoin and other cryptocurrencies.