EU Parliament Member Calls To Ban Crypto During Banking Crisis

March 18, 2023 10:14 am Comments

Many among the crypto community and speculators familiar with the industry are starting to think that there may be a financial war against crypto right now.

European parliament member Johan Van Overtveldt just called for a ban against crypto despite the ongoing banking crisis that just happened.

His claim was that digital assets provide no economic value which does not make sense given the fact that crypto was explicitly designed to be an alternative during times of economic instability.

The parliament member goes on to compare crypto to drugs which is an unusual comparison which has prompted most to think that the government is trying to send a clear anti-crypto message.

These comments come during a time when the EU parliament is about to vote on regulations and frameworks regarding crypto. reports:

The banking sector has been infused with renewed panic following several concerning developments. Specifically, Silicon Valley Bank and Signature Bank collapsed in the US, followed by turmoil with Europes Credit Suisse, and a historic rescue plan to save First Republic Bank.

“Another lesson to be learned from the current banking commotion. Enforce a strict ban on cryptocurrencies,” Van Overtveldt stated. Additionally, labeling the digital assets as pure speculation, containing, “no economic or social value.” Interstingly, Van Overtveldt added, “If the government bans drugs, it should also ban cryptos.”

The contagion from the fall of crypto-friendly bank Silvergate, and Silicon Valley Bank, has perhaps informed the former Belgian official’s stance.

Undoubtedly feeding into a narrative that may have spelled doom for Signature Bank. As board member Barney Frank stated its closure sent “a strong anti-crypto message,” from regulators.

Of course, it seems unlikely that a full crypto ban will actually happen in the EU given that the region has already been working on a comprehensive legal framework that will govern how digital assets will be regulated in the future.

Johan Van Overtveldt only represents one of the political grouping in parliament as well so his proposal will likely be rejected by other members of the parliament.

However, this does highlight that there is a lot of resistance from the traditional financial sector to try to prevent the continued adoption of crypto.

The banking crisis that just happened may have just accelerated that trend so many investors should take precaution if resistance from the traditional system continues to increase in the short term future, especially from the SEC.

CoinDesk concludes:

Van Overtveldt represents the right-wing European Conservatives and Reformers, the fifth-largest political grouping in the Parliament, in the Economic and Monetary Affairs Committee. He was Belgium’s finance minister from 2014 to 2018. The ECR says it’s dedicated to individual liberty, private property and limited government.

The Parliament’s 705 lawmakers are due to vote as soon as next month on the Markets in Crypto Assets regulation, which will offer a regulatory framework for digital-wallet providers and exchanges.

Van Overtveldt led the Parliament’s work on a new law to allow trading of securities based on distributed ledger technology, and has said that the technology underpinning crypto has “great potential” to improve productivity.

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