Crypto's Trojan Horse

Published on by Cryptoslate | Published on

The whole concept of this is so that the European Union can control monetary policy amount the Member States that use the official currency of the Union.

They have, ultimate say over whatever happens to member states in a monetary sense, although some member states do retain some powers.

We saw the biggest flex of these powers during the financial crisis when a number of Member States including Greece were bailed out from their financial situation.

The Central Bank of Malta has a massive capital subscription paid up with the European Central Bank, making it a fully fledged member of the European Monetary Community.

Because, much like with America, the Member States can only have one currency in circulation.

We have recently seen an example of this with the EU introducing new laws around Know Your Customer and Anti-Money Laundering rules which have a precise impact on companies undertaking an ICO. Twinning that with how much we saw the GDPR having a global impact, you begin to see the true strength of the European Union over its member states.

The European Treaty will not let member states create a law which is in direct conflict with an Act of the European Parliament as long as the EU has jurisdictional rights to make such a law.

At the moment, a majority of those member states, including much larger ones are cracking down on ICOs and crypto operations in an attempt to stamp them out of circulation.

In the meantime, while the laws in Malta and those already passed in Estonia and other countries for crypto operations are great news.

With the cloud of the EU leaning over its member states the question has to be asked, is the work being done by EU member states nothing more than a Trojan horse for those in the crypto world?