EU's supervision on virtual currency

1. Japan
   
   among Asian countries, Japan seems to be the first country to support cryptocurrency. On the contrary, in the past few years, China has been cracking down on ICO and closing down the trading business of digital currency exchanges in China. Compared with China's strict restrictions, Japan is undoubtedly far ahead in the field of cryptocurrency
   
   maybe it's because of the anonymous people (or teams?) who developed bitcoin Japan's pseudonym is Nakamoto, so Japan's friendliness to cryptocurrency ranks at the top
   
   after being attacked by hackers, the Japanese based Mt. GOx exchange finally closed down in February 2014, which is still the biggest scandal in the digital currency world. After that, Japan's licensed cryptocurrency exchanges came together to form a new self regulatory organization, which put forward guidelines to legalize ICO and formulated clear instry standards to protect investors, while allowing the instry to grow and continue to innovate
   
   members of this association, called ICO business research group, include members of Parliament, academics, bankers and the CEO of bitflyer. Bitflyer is the largest cryptocurrency exchange in Japan. According to the government study, the legislature may allow potentially profitable ICO and cryptocurrency exchanges to continue trading, but at the same time, it must provide the government with more insight into these activities and enhance transparency

   

   blockchain, and each token is said to be supported by one barrel of crude oil. However, analysts generally believe that Maro is obviously lying
   
   nevertheless, as of the end of April, it was reported that Venezuela could offer India a 30% discount if India used petro currency to pay for its crude oil. Bitcoin magazine reported that "Venezuela has assured the buyer that petro currency will have all the functions of legal tender, can pay taxes and can be converted into Venezuelan hard currency, namely Bolivar
   
   while many people are skeptical of petro itself and the Venezuelan government's move to integrate cryptocurrency into its declining economy, others believe that any effort to win the credibility of cryptocurrency is worthwhile. David Garcia, senior vice president and partner of ripio credit network, pointed out that Latin America is going through a transitional period
   
   Latin America is in a difficult situation e to political corruption and economic crisis, and is troubled by high inflation and rapid devaluation of local currency, especially in Venezuela. Garcia believes that innovative ideas and solutions such as blockchain and cryptocurrency are necessary for these countries to develop in a positive direction

   3. Sweden
   
   in 2015, Sweden became the first country in Europe to approve the trading of two kinds of bitcoin exchange traded notes (ETN), which are managed by XBT providers. The Swedish Krona denominated bitcoin tracker one XBT (ST: se0007126024) fund and bitcoin tracker EUR XBT provider (ST: se0007525332) can be traded on Nordic Nasdaq, the main Swedish exchange
   
   since its launch, XBT has been launched in Denmark, Finland, Estonia and Latvia. As of early December 2017, cointegraph announced that Sweden's ETN "is more than 80% of the US ETF". In mid January, CNBC said that Sweden's bitcoin investment project attracted $1.3 billion
   
   in addition, the Swedish central bank has been considering the development of an electronic currency called e-krona to cope with the situation that Sweden is rapidly becoming the first cashless society in the world. However, Sweden's banking sector has hit back. Hans Lindberg, chief executive of the Swedish Bankers Association, said in an interview on April 17: "in terms of e-money, there is already a lot. There are bank cards, credit cards... And other electronic solutions. The most likely scenario in the future is that the Swedish central bank will stick to wholesale business. "< However, James Pomeroy, a global economist at HSBC, believes that Sweden is still likely to become the first country in the world to issue digital currency, which may be launched in the next few years. Venezuela may be ahead in government supported cryptocurrency issuance, but Sweden, a Scandinavian country with stronger economy and more trusted regulators, may still disrupt the existing order of cryptocurrency and even lead the European cryptocurrency instry< Switzerland
   
   4. The Swiss financial market supervision authority is at the forefront in clarifying the regulation of cryptocurrency and supporting ICO. Marc bernegger, a Swiss financial technologist, cryptocurrency entrepreneur and consultant to Swiss real coin, said Switzerland has traditionally been a haven of wealth. To some extent, this benefits from Switzerland's more open financial regulation and a long culture of protecting the privacy of Swiss banking institutions' customers. Bernegger pointed out that Switzerland has been "looking forward" to cryptocurrency assets as part of overall wealth management and is "preparing for changing economic forms."
   
   the surrounding area of Zug in North Central Switzerland is called crypto Valley, which has been called crypto valley since Ethereum ICO was launched in 2014. For cryptocurrency entrepreneurs, developers and investors, cryptovalley is one of the most active ecosystems,

   5. Israel
   
   in Israel, discussions on the regulation of cryptocurrency continue, and legislators are looking for ways to protect investors. Although Israel's banking system has failed to help promote bitcoin related business, Union Bank of Israel, the sixth largest bank in Israel, is being sued by a local cryptocurrency miner for stopping transferring funds from bitcoin exchange to the miner; In addition, Israel's second-largest bank, bank Leumi, was intervened by the district court and the country's Supreme Court when it tried to block the account activity of a local cryptocurrency exchange. This is undoubtedly a major victory for the local cryptocurrency instry
   
   in addition, it has recently been reported that the Central Bank of Israel has been considering the possibility of issuing state supported cryptocurrency for several months. According to the Jerusalem Post, an anonymous source said, "digital shekel can record every transaction through mobile phones, making tax evasion more difficult." If a digital Shekel is introced, its value will be equal to that of an entity
   
   in terms of technological innovation, Israel's start-up corporate culture is at the forefront. Roy meirom, co-founder and vice president of business development of wemark, pointed out that many of the 300 multinational R & D centers operating in Israel are committed to the application of blockchain<
   
   Roy meirom also said that this small middle east country, commonly known as the "start-up country", is rapidly becoming the development center of blockchain< Bermuda
   
   Bermuda, a member of the Commonwealth in the North Atlantic and Caribbean, has been actively seeking the adoption of cryptocurrency related regulations to begin to establish an appropriate framework to promote cryptocurrency business activities, including cryptocurrency exchanges, wallet services and payment providers. Recently, the Bermuda Monetary Authority's virtual currency business act was passed in the house of Commons
   
   Bermuda has carried out relevant legislative activities on ICO in the form of amending the Companies Act 1981 and the limited liability companies act 2016. At the end of last year, Bermuda's prime minister and Finance Minister David Burt set up a blockchain working group, which is divided into two groups: the legal and regulatory Working Group on blockchain and the commercial working group on blockchain
   
   7. Berlin, the capital of Germany, is perhaps one of the EU's most cryptocurrency friendly cities. In 2013, Berlin was called the "bitcoin capital of Europe" by the guardian, and it has always maintained this status. At present, people can use bitcoin to buy apartments in Berlin, make holiday reservations, and pay for meals in various fashionable local restaurants
   
   Thomas Schouten, marketing director of lisk, a Swiss based blockchain application platform, said the application chain has a major contractor office in Berlin. Schouten said Berlin provides a vibrant start-up and technology space with a huge talent pool and vibrant culture, making it easy for companies to attract employees. In addition, he said that Germany and the German government are open to blockchain technology
   
   in 2014, Germany became the first country to accept bitcoin as a currency, highlighting its open attitude. Similarly, board members of the Bundesbank have called for effective and appropriate regulation of cryptocurrencies and tokens. In fact, Joachim wuermeling, director of the Bundesbank, has pointed out the need for international cooperation on this issue:
   to this end, a number of decision makers of the Bundesbank have participated in discussions involving the whole EU region, including stimulating the cryptocurrency instry in the whole EU region through the European block chain partnership "Scientists and engineers in the instry, many of them retired members of Israel's elite military intelligence forces, have transferred to fill the huge talent demand of the instry, and are supported by more and more blockchain start-ups and supporting ecosystems."

2. "because the regulatory capacity of a single country is obviously limited, only by maximizing the potential of international cooperation can virtual currency be effectively regulated."

The European Central Bank (ECB) was established on June 1, 1998. On January 1, 1999, the European Central Bank assumed the responsibility of formulating monetary policy in the euro area and achieved the goal of implementing a single currency euro and a unified monetary policy in the euro area countries 1) European Central Bank System
the European central bank system consists of two levels, one is the European Central Bank with legal personality, the other is the Central Bank of EU Member States. Countries that have not yet adopted the euro in EU member states are members of the European central bank system, but they cannot participate in the formulation of monetary policy in the euro area, nor in the operation and implementation of monetary policy. The Governing Council and the executive board are the two main decision-making bodies of the European Central Bank
① the president's Council is a supranational decision-making body, which is responsible for formulating and implementing the monetary policy of the euro area. Its main responsibility is to determine the monetary policy objectives of the euro area, the level of major interest rates and the reserve amount of the central bank system. The Governing Council consists of six members of the Executive Council and central bank governors of euro zone countries. When formulating monetary policy, members of the board of Governors do not act as national representatives. They must consider the overall interests of the eurozone, not the interests of their respective members. At the same time, the European central bank system adheres to the principle of decentralization and stipulates that the European Central Bank relies on the national central bank to carry out banking business. However, the National Central Bank, as the business department of the European Central Bank, must follow the guidance and instructions of the European Central Bank< (2) the executive board is mainly responsible for the implementation of monetary policy, that is, the implementation of monetary policy formulated by the president's Council and the daily business of the European Central Bank
in order to effectively form and promote the decision-making process of the European central bank system, the European central bank system has set up 12 expert committees composed of representatives from the central banks of member countries and other national regulatory authorities: the accounting and monetary Committee, the banking supervision committee, the Bills Committee, the external Liaison Committee, the information technology committee, the internal audit committee, the central bank supervision committee, the Bills Committee, the external liaison committee, and the information technology committee International Relations Committee, Law Committee, market operation Committee, monetary policy committee, payment and Settlement Committee and Statistics Committee
(2) the objective and independence of the European Central Bank
the primary objective of the European Central Bank is to maintain price stability. Without affecting the overall goal of price stability, the central bank is obliged to support other economic policies such as economic growth, employment and social security in the euro area
in order to ensure the realization of the primary goal of the European Central Bank, the Maryo stipulates the principle of independence of the central bank, which is mainly manifested in the following aspects: first, the independence of institutions. Neither the European Central Bank nor the central banks of Member States, nor the task members of the decision-making bodies, shall seek and receive guidance from any body of the European community, the governments of member states or other organizations when exercising their powers and performing their ties. The institutions and organizations of the European Community and the governments of the member states shall not exert influence on the members of the decision-making bodies of the European Central Bank; Second, the independence of personnel. Members of the Governing Council may serve for a long period of time. The term of office of the first governor of the central bank is eight years, followed by five years. The term of office of the governor of the Central Bank of a member state shall be at least five years; Third, the independence of capital budget. The European Central Bank has its own budget, its capital is subscribed and paid by the central banks of the euro area countries, and central banks are prohibited from lending to the public sector. The monetary policy of the European central bank system can be divided into three categories: open market business, permanent instruments and minimum reserve
(1) open market business. Open market business plays a major role in guiding interest rates, managing money markets, and sending policy signals to the market. There are four specific ways: first, refinancing. The central banks of member countries conct the business once a week according to the bidding proceres, and issue policy signals to the market when it matures in two weeks. The refinancing rate is also the most important leverage rate for the European Central Bank to regulate the economy. The second is long-term financing business, which is concted once a month by the central banks of the member states according to the bidding proceres and matures in three months. The third is fine-tuning, which is carried out by the central banks of Member States through bidding proceres and bilateral proceres under specific circumstances. The fourth is structural operation. As long as the European central bank wants to adjust its capital structure, it can do so through bidding proceres and bilateral proceres
(2) standing facility for managing working capital. The European Central Bank provides and absorbs overnight liquidity through a permanent tool for managing liquidity, regulates the overnight lending rate, and transmits policy signals to the market by changing the overnight lending rate< (3) reserve system. Banks and credit institutions in the euro area must maintain a minimum reserve in the accounts of the Central Bank of the host country in accordance with the standards and conditions set by the European central bank system. The minimum reserve deposit in a bank is interest bearing. The exchange rate policy is an important part of the euro area policy. The euro area will formulate exchange rate policy on the premise of maintaining price stability
(1) the formulation mechanism of exchange rate policy. The European Council has the right to formulate exchange rate policies in the euro area. The European Central Bank and the European Commission also play an important role. In terms of coordinating exchange rate policy, the European Council supervises the trend of euro exchange rate according to economic development and puts forward relevant opinions to the Council of Governors of the European Central Bank. The European Central Bank is responsible for organizing the implementation of exchange rate policy formulated by the European Council, and the European Council has the right to decide to sign relevant exchange rate regime agreements, Determine the position of exchange rate with third countries and international organizations< (2) foreign exchange management and intervention According to the Maastricht Treaty, the European Central Bank has full power to carry out foreign exchange business. The European Central Bank has foreign exchange reserves of 50 billion euros, which are paid by the central banks of member countries in proportion to the population and economic aggregate of their countries. According to the regulations of the European central bank system, the European central bank can freely control the foreign exchange reserves of 50 billion euros, and can also use the foreign exchange reserves of the central banks of Member States when necessary. When the central banks of the member countries of the euro area use their foreign exchange reserves, they must obtain the approval of the European Central Bank, so as to prevent the central banks of the member countries from inconsistent with the exchange rate policies of the euro area when they conct foreign exchange business. When necessary, the European Central Bank may, under the direction of the European Council, intervene in foreign exchange between the euro area and the US dollar, Japanese yen and other currencies. The board of Governors of the European Central Bank determines how to allocate the terms of reference for foreign exchange intervention, and selects banks and credit institutions for foreign exchange intervention according to credit reputation, competitive price, asset size and other standards< The European Council, the European Central Bank and the European Commission also play an important role. In terms of coordinating exchange rate policy, the European Council monitors the trend of euro exchange rate according to economic development and puts forward relevant views to the Council of Governors of the European Central Bank, which is responsible for organizing the implementation of exchange rate policy formulated by the European Council. The European Council has the power to decide to sign agreements on the exchange rate system and to determine the position of exchange rate policies with third countries and international organizations

In the future, the GDP and foreign trade volume of the euro area will be higher than those of the United States and Japan. After the launch of the euro, the joint promotion of the unified currency and the unified market will undoubtedly bring new economic growth, making the EU in a favorable position in the competition with the United States, Japan and other economic powers

the disadvantages of the use of the euro as a single currency in the European Union:

1. The unification of the euro in the European Union is actually the unification of the monetary policies of the countries in the euro area and the transfer of part of their sovereignty to the European Union. Monetary policy and fiscal policy are important means for a country to adjust its economy. Now, only fiscal policy remains in the hands of each country