All parties represented in the Spanish Congress have voiced support for a new draft legislation introducing favorable crypto regulations in the country. We’ve covered the details in today’s edition of Bitcoin in Brief. Also, Slovenia adopts a crypto action plan, Estonia drops plans to issue a national cryptocurrency, and Hungary claims it’s ready to join the global blockchain market.
Spanish Parties Call for Favorable Crypto Regulations
Lawmakers in Spain, who have earlier this year reviewed proposals to introduce incentives for crypto companies, have now issued a unanimous call for adopting regulations that favor the implementation of crypto and blockchain technologies. These should be introduced to the market “through controlled testing environments.” A draft legislation aimed at achieving the goal, proposed again by the ruling People’s Party, has just won support from all parliamentary groups in the Finance and Public Function Committee of the Spanish Congress.
The legislative initiative calls for promoting the advantages of the technology that underpins cryptocurrencies like bitcoin, including cost savings through the elimination of intermediaries in payments and transfers and the benefits it offers when it comes to raising capital, especially for startups. Its sponsors urge support for projects to build authorized blockchain technology networks, Europa Press reported.
The draft approved by Spain’s leading parties also turns attention to the perils associated with crypto-related operations, calling for “adequate dissemination of information about the risks” assumed by investors, as well as their rights and the guarantees they can rely on. According to Spanish deputies, the approach will help to avoid “economic damages that are impossible to repair”, such as those linked to high-risk financial products.
Lawmakers call on the government in Madrid to support the initiative and join the efforts of the National Securities Market Commission and the Bank of Spain in that direction. They also insist on reaching a common position in regards to the use and the regulation of cryptocurrencies on European level and ask the executive branch of power to work with other EU countries and institutions to achieve that.
Slovenia Adopts Crypto and Blockchain Action Plan
The government in Ljubljana has adopted an action plan to underpin the implementation of blockchain technology in Slovenia and create a regulatory framework for cryptocurrencies. According to the Economy Ministry, the plan entails a series of measures designed to also regulate Initial Coin Offerings (ICOs). Slovenian authorities hope to establish a safe and stable legal environment to help the creation, growth and development of blockchain technology-based projects and startups.
Another goal is to transpose in the national legislation the legal provisions adopted by European and other relevant institutions, STA reported. Local officials believe that the application of blockchain technologies can improve the competitiveness of the Slovenian economy. The government also backed the creation of a European Blockchain Hub as a link between public and private stakeholders in the field, both in Slovenia and within the EU. On Thursday, the Slovenian Ministry of Economy was tasked to get actively involved in the hub.
Estonia Backpedals on Plans for National Crypto
Estonian officials have scaled down plans to issue a national cryptocurrency, which were criticized some time ago by both the European Central Bank and local banking authorities. According to Siim Sikkut, who is in charge of the country’s IT strategy, Estonia has dropped its intentions to peg the Estcoin to the common European currency and offer it to all citizens. The digital tokens will instead be distributed as an incentive to e-residents of the Baltic country, Sikkut said in an interview, Bloomberg reported. These are foreign nationals who use Estonia’s electronic identification system to remotely sign documents and set up companies.
The tech-savvy former Soviet republic was one of the first European nations to come up with plans for a national cryptocurrency. Similar initiatives have been discussed in Sweden, Switzerland, Poland, the UK, and other countries. The idea, however, was not appreciated by the ECB management. In September, the bank’s president, Mario Draghi, criticized the proposal declaring that “No member state can introduce its own currency. The currency of the Eurozone is the euro.”
“We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community. Other options aren’t on the table. We’re not building a new currency,” Siim Sikkut said. This was confirmed by the author of the Estcoin plan, Kaspar Korjus, who also noted that the details are still being analyzed for potential benefits. Estcoin “would definitely not be a national ‘cryptocurrency’,” he emphasized. Estonia’s e-residency program has so far issued ID cards to more than 35,000 foreigners. The majority of the participants are from Finland, the Russian Federation and Ukraine.
Hungary Prepared to Join the Global Blockchain Market
Blockchaineum 2.0, arguably the largest blockchain summit in Central and Eastern Europe, recently gathered major stakeholders in Budapest to discuss blockchain-based solutions and other hot topics related to the implementation of the technology around the world. While many in Europe are just starting to take blockchain seriously, Hungary has been preparing for some time and now claims it’s ready to join the global blockchain market.
“Many regulatory rules have been laid down recently on European level, and it is in Hungary’s best interest to make use of them in order to become a regional center. Although, this won’t happen because of regulation, but rather on purely market basis,” said Tamás Czeglédi, quoted by the Budapest Business Journal. He is one of the organizers of the event and is working to put his country on the European blockchain map.
Hungarian business wants to jump on the blockchain bandwagon ahead of regional competitors and it has created a Blockchain Competence Center (BCC) earlier this year to prove its intentions. “Whereas the EU had been focusing on regulation until around a year ago, the past few months saw a shift towards a more practical approach,” said Péter Benedek, the CEO of BCC. “The newly established Ministry for Innovation and Technology, along with the enhanced national digital wellbeing strategy, can help local blockchain players embrace innovative solutions and improve their fundraising potential,” he added.
What are your thoughts on today’s Bitcoin in Brief topics? Let us know in the comments section below.
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