According to Ross, the inflationary stages and high yields that could arrive from the rise of Bitcoin increase the interest for the asset as an investment asset among investors. Therefore, it needs to be greater unity in regulatory procedures to address digital assets.
Verana Ross, the actual President of the European Securities and Markets Authority, assured that the current economic panorama, in parallel with financial precariousness and high inflation stages, could help citizens invest more funds in Bitcoin.
Interest in Bitcoin is Increasing among Investors
Ross’s statements arrived during an interview. She explained that in the current panorama, the European Union (EU) must sharpen its regulatory perspective and adjust to the requirements of those interested in Bitcoin and the most prominent digital assets.
The official also expressed that besides playing the role of haven assets, people would also get interested in the high returns that digital currencies can offer during hard times, which makes Bitcoin and other exponents quite attractive as investment currencies.
The representative said that with inflation reaching high peaks, investors would seek investments that can try to offset these figures and leave higher returns, leading to more risk-taking.
A Unified Approach is the Main Requirement
Given the variety of approaches on the table, Ross expressed the urge for a more unified perspective on crypto regulations in European territory, which depends strongly on national policies and causes an imbalance between the approaches led by regulators.
Portugal is a country whose Legislative Assembly already rejected the proposal launched to tax commercial activities with digital assets between users. This complex procedure, if approved, would impose the payment of taxes from the purchase/sale of the equivalent of EUR 5,000 in digital assets.
As such, in Portugal, the entities that allow the trading of digital assets must comply with the corresponding taxations, but since these assets get labeled as currencies, users must not assume the payment of this kind of tax for trading or carrying out other financial activities with said currencies.
The warning advice made by Ross goes in parallel with the announcements made by the President of the Central Bank of Europe, Christine Lagarde, who has repeatedly asked for stronger regulation of digital assets and their speculative features.
Highly Volatile Market
Ross’s opinion arrived in a moment filled with certain unpredictability within the market since Bitcoin, and the most prominent exponents of the sector have been decaying for several weeks after the crash of the Terra ecosystem at a rate of what happened with the LUNA token and the UST stablecoin.
Some users got inclined to think that this situation could represent the best chance to invest in assets like Bitcoin cheaply. In contrast, others are more pessimistic and foresee the possibility of a much deeper crash soon.
Users have to wait for how the market evolves and overcomes this situation, especially given the regulatory focus that many agencies are taking regarding the subject.
By: Jenson Nuñez
