Blockchain and virtual currency regulation in the EU

Abstract

Purpose This paper aims to explain the current stage of blockchain and virtual currency regulation in the EU. Design/methodology/approach The paper explains the current state of blockchain and virtual currency regulation in the EU, presenting the EU institutions’ main policy and regulatory initiatives on, and approaches to, blockchain and virtual currency. Findings Though the EU is looking seriously at the potential of blockchain and distributed ledger technologies, many European institutions are of the opinion that it is still too early to regulate in this field. As far as virtual currencies are concerned, Member States’ central banks do not consider them to be equivalent to money or legal tender. However, with the current high profile of and interest in virtual currencies, one can expect the European Commission to at least consider what regulation might be called for. Originality/value This study provides practical guidance on and introduction to the current regulatory and policy landscape of blockchain and virtual currency in the EU.