European Parliamentarian Calls for the Prohibition of Crypto

Johan Van Overtveld, a former finance minister for Belgiun and current member of the European Parliament, has proposed banning cryptocurrencies in the wake of the present banking crisis. Van Overtveldt claims that the digital asset sector seems to have no social or economic value. This occurs when the effects of the collapse of Silicon Valley Bank and Silvergate intensify on European stock markets, causing Credit Suisse to loan $53 billion from the Swiss National Bank and driving its shares to a record low.

Ex-Belgian Official Criticizes Crypto

Former Belgian finance minister and current member of the European Assembly Johan Van Overtveldt proposed a restriction on cryptocurrencies in a Twitter post on Friday in response to the instability in the banking sector. The European Parliament is about to vote on important crypto licensing legislation intended for the entire union, and Van Overtveldt, the economic spokesman for an alliance of 64 EU deputies, asserted that cryptocurrency is entirely speculative with no social or economic value. He suggested that the most recent financial crisis should serve as another lesson to completely ban cryptocurrencies.

Moreover, Van Overveldt has demanded that cryptocurrency be outlawed if narcotics are outlawed. Also, this happens as the consequences of Silicon Valley Bank’s and Silvergate’s failure on European markets grow, causing Credit Suisse’s stock to hit a record low and requiring a $53 billion loan from the Swiss National Bank.

The 705 members of the Parliament are expected to vote on the Markets in Crypto Assets bill as early as next month, which would provide wallet providers and exchanges legal protection if they meet the necessary governance and consumer-protection standards. Van Overtveldt has also played a leading role in the creation of new laws that allows securities trading to rely on the use of distributed ledgers and has stated that the technology behind cryptocurrencies has “great potential” to raise productivity.

The Reason Behind The Former Belgian Official’s Stance

Perhaps the former Belgian official’s position has been influenced by the failure of crypto-friendly banks Silicon Valley Bank and Silvergate.  Barney Frank, a board member, said that the closure of the company conveyed a clear message that regulators oppose cryptocurrencies.