European Commission wants to further promote Bitcoin and blockchain startups

Rage Comment : The European Commission recently announced an initiative to adjust regulations to promote technological innovation and entrepreneurship in Europe. It analyzes the differences between the innovation and entrepreneurship environment in Europe and the United States and other countries, and points out that European countries should provide a good legal and regulatory environment for innovative companies in order to attract innovative companies and emerging technologies. However, the EU still cannot recognize the anonymity of digital currency transactions.

Translation: Annie_Xu

The European Commission (EC) recently revealed a new Start-up and Scale-up Initiative, which aims to reduce regulatory barriers in Europe and attract entrepreneurs, innovators and start-ups.

The problem for European startups

The pan-European trade association EBAN said that the proportion of entrepreneurs in Europe is lower than that in the United States. "But the problem is that European companies are usually small." Unlike American startups such as Apple, Amazon and Google, European startups often have only a few employees. Their innovative thinking rarely goes beyond the local market and is limited to one country.

Günther Oettinger, the digital economy and society commissioner, said many European companies were small and often closed down after a few years or decided to move to another country rather than tap the potential of the EU's 500 million people.

“The European Commission has decided to change the status quo and help start-ups deepen their innovation and job potential.” Almost all new jobs in the EU come from start-ups.

Assisting startups with regulatory policy adjustments

Elzbieta Bieńkowska

Commissioner for the Internal Market, Elzbieta Bieńkowska, said:

"It should be easier to start and grow a business in Europe and Europe needs to be the first choice for great business ideas. This will create more jobs, innovation and competitiveness for Europe."

The EU has implemented three adjustments. The first is financial support for start-ups. The second is that the Commission provides entrepreneurs with a second chance. It has also proposed bankruptcy law legislation to allow companies in financial difficulties to restructure and avoid bankruptcy and layoffs. The third is to simplify the tax process.

Impact on Bitcoin and Blockchain Enterprises

The initiative will benefit bitcoin and blockchain companies in Europe. Oettinger said there are “more and more examples of successful growth in Europe,” such as Luxembourg’s blockchain companies.

However, bitcoin businesses may face new challenges as the commission remains determined to remove the anonymity of the digital currency.

The Commission has adopted a proposal from the European Parliament to bring digital currency operators and wallet services under the regulatory scope of the existing EU Anti-Money Laundering Directive.

The European Parliament website states:

“These proposals include investigating transactions made by customers to exchange digital currencies for fiat currencies, which could remove the anonymity of such exchanges.”

Valdis Dombrovskis

The deputy chairman of the committee, Valdis Dombrovskis, recently revealed:

"Cryptocurrency venture capital has no corresponding identity, only public keys. Users can conduct transactions anonymously. Therefore, government agencies must obtain necessary information to prevent money laundering and terrorist financing."

The commission stressed the importance of eliminating the anonymity of digital currencies, but did not propose any technical solutions. “The commission did not formulate any measures specific to blockchain, but rather to the main players providing similar services,” Dombrovskis wrote.

He also listed companies that are not covered by the anti-money laundering directive, saying that "software or application providers are not included in the committee's proposal."