European lawmakers call for ban on cryptocurrencies, citing banking crisis

A European lawmaker has called for a ban on cryptocurrencies, citing the ongoing crisis in the banking sector.

Ex-Belgian Finance Minister Proposes Ban on Decentralized Digital Currencies

MEP Johan Van Overtveldt has stressed that governments should ban cryptocurrencies such as Bitcoin. His call comes amid a crisis sparked by the collapse of several banking institutions, including two crypto-friendly lenders in the United States.

“Another lesson learned from the current banking turmoil. A strict ban on cryptocurrencies,” the lawmaker, who previously praised blockchain technology, tweeted Friday. “Speculation is toxic and has no additional economic or social value. If a government bans drugs, that government should also ban cryptocurrencies,” he argued.

Van Overtveldt is a Belgian journalist and politician from the New Vlaandren Alliance (N-VA) party, who served as the country’s finance minister under Prime Minister Charles Michel from 2014 to 2018.

Elected to the European Parliament in 2019, he chairs the Budget Committee and represents the European Conservative and Reform (ECR) group in the Economic and Monetary Committee (ECON).

Overtveldt’s statement on cryptocurrencies comes after the collapse of three U.S. banks, two of which were linked to the cryptocurrency space, Silvergate Bank and Silicon Valley Bank. The fallout from these failures spread across Europe, affecting Credit Suisse, a large investment bank in the Old Continent.

Europe has yet to fully regulate its crypto-economy by implementing a regulatory scheme called Markets in Cryptoassets (MiCA). EU institutions and member states agreed on the proposal last summer. It introduces rules for crypto service providers in the 27-member block.

  • Should Cryptocurrency Bans Be a Policy Choice?
  • Charlie Munger: The U.S. Should Federally Ban Cryptocurrencies

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