European Policymakers Won’t Rush to Further Regulate Cryptos: Report

  • In a meeting in Vienna, Europeans leaders agreed they won't rush to further regulate the crypto market.
  • Instead, reports suggest they'll wait for a thorough report on it.

European Finance ministers have recently gathered in Vienna, in a meeting in which they addressed the growing cryptocurrency ecosystem. In it, they decided they aren’t rushing to further regulate the market.

Instead, Fortune reports, they’ll wait for a thorough analysis made by European authorities. Irish Finance Minister Paschal was quoted as saying the European Union (EU) will “be acting carefully in this area,” as the policymakers side with the Financial Stability Board, which earlier this year noted cryptos aren’t currently a threat to the financial system.

While the Finance Ministers policymakers aren’t in a rush to regulate the market, they have moved to increase its transparency. So far comprehensive regulations haven’t been drafted because the euro doesn’t represent the majority of bitcoin’s trading volume, but regulators reportedly worry about fraud in the market, and about cryptos being used for money laundering or terrorism financing.

The meeting in Vienna, per Fortune, was meant to make sure regulators in the EU are on the same page when it comes to whether crypto regulations are needed. Olaf Scholz, Germany’s Finance Minister, noted it ensured policymakers are “put in a position in which they’re able to act.” Per his words, “it’s obvious that we shouldn’t wait too long with that.”

As CryptoGlobe recently covered Bruegel, a Brussels-based think tank, called for EU-level regulations on cryptocurrencies, noting it should be scrutinized how exchanges operate and how cryptoassets are distributed in initial coin offerings (ICOs). Per the think tank “limiting the exposure of financial institutions” to cryptocurrencies would be “sensible.”

Regulators throughout the world, as Fortune noted, have been taking steps to reign over the crypto ecosystem. China cracked down on the industry, banning domestic crypto exchanges and ICOs last year. Its crackdown recently saw Baidu start censoring crypto discussions in its forums.

Japan, on the other hand, adopted an exchange-licensing regime and accepted bitcoin as a legal payment method in April of last year. The result was seemingly positive for the industry as CryptoCompare data shows the Japanese yen represents over 10% of bitcoin’s total trading volume.

EU regulators have, as covered, been considering tightening cryptocurrency regulations over transparency concerns. The crypto market has, since late last year, lost over 75% of its total value. Bitcoin, the flagship cryptocurrency, came down from a near $20,000 all-time high to about $6,200 at press time.

Binance Battles Brazilian Diplomat Trying to Register its Brand

Leading cryptocurrency exchange Binance is battling a Brazilian diplomat, Paulo Renato Dallagnol, after he registered the website Binance.com.br and its brand at the National Institute of Industrial Property (INPI).

Binance sued INPI and Dallagnol, Brazil’s vice-consul in Cyprus, after he decided to register a Brazilian version of Binance’s website on June 30, 2018. Binance, it’s worth noting, has been operating in Brazil since June 14, 2017 according to the case.

The leading cryptocurrency exchange argued the Binance brand is protected as it was registered in China, a signatory of the Paris Convention for the Protection of Industrial Property. According to local news outlet Portal do Bitcoin, Binance also argued that according to Industrial Property Law it wouldn’t have been possible for the registration to be recognized. It also pointed out Dallagnol has been a “registered use of the author’s website since December 2017, date that precedes the deposit of the Binance brand.”

The battle saw Binance get an early victory, as judge Eduardo André Brandão de Brito Fernandes, of the 25th Federal Court of Rio de Janeiro, suspended the effects of the trademark’s registration. Dallagnol was ordered to not use the Binance brand in any way, under threat of being fined. The decision, however, was preliminary as the diplomat and INPI may still fight back.

Binance.com.br’s Registration

Portal do Bitcoin points out that Dallagnol registered the name “Binance” for the Binance.com.br domain with INPI under “class 36, identifying various financial services (stock and securities brokerage; stock brokerage; financial management; advisory, consultancy and investment management of third parties, etc.)”

The diplomat’s registration was granted last year in Brazil, and was filed under the same class Binance itself uses. Even before the 25th Federal Court of Rio de Janeiro decided to bar Dallagnol from using the Binance brand, the INPI reserved a right to nullify the registration.

"The registration was granted on 7/7/2019 and is subject to an administrative nullity process (PAN), not yet decided by the INPI.”

Dallagnol, according to the news outlet, became vice-consul in Nicosia, Cyprus back in August 2018. He has a master´s degree in law from the Carlos III University in Madrid, Spain. His thesis was on the right to intellectual property.

The diplomat has in the past addressed cryptocurrencies on the website of a law firm from Rio Grande do Sul. He has also served as a specialist in digital law.

Featured image via Pixabay.