On crypto and drugs: Why this ex-Belgian finance minister wants crypto banned as a drug

On crypto and drugs: Why this ex-Belgian finance minister wants crypto banned as a drug

Crypto should be banned the same way governments ban drugs, Johan Van Overtveldt, a member of the European Parliament and former finance minister of Belgium, said in a tweet.

His controversial sentiments quickly sparked a heated response on Twitter, including that of Cardano founder Charles Hoskinson.

Van Overtveldt’s remarks comes in the wake of the recent failures of three US banks – Silicon Valley Bank, Signature Bank and Silvergate Bank – calling digital assets “speculative poison.”

Crypto has no economic, social value?

As the European Parliament prepares for a crucial vote on revolutionary digital asset licensing rules for the EU, Van Overtveldt, who serves as the economic representative of a coalition of 64 EU lawmakers, expressed his views on the matter.

Van Overtveldt tweeted:

“If a government bans drugs, it should also ban crypto.”

He also reduced such assets to having “no economic or social value”.

The EU is still in the process of implementing a comprehensive regulatory framework for its digital currency industry. This legislative package, known as Markets in Crypto Assets (MiCA), was approved by EU institutions and member states last summer.

The aim is to establish a set of guidelines for cryptocurrency service providers operating in the 27 member countries of the bloc.

Charles Hoskinson, Cardano Founder. Image: Cointribune

Charles Hoskinson reacts

Meanwhile, Charles Hoskinson, the creator of the Cardano blockchain, has expressed his perspective on politicians who attribute the downfall of major US banks solely to cryptocurrencies.

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In response to an article covering Van Overtveldt’s proposal to ban these digital asset types, he said implored the virtual currency community to remain steadfast and compile a list of politicians who oppose it. By doing so, when election time comes, they will have the knowledge necessary to elect only candidates who support crypto.

As the fallout from the banking crisis continues to unfold, a number of US lawmakers have argued that the interconnections between financial institutions and bitcoin companies played a role in their downfall.

Events began with Silvergate’s decision to voluntarily liquidate on March 8, followed by Silicon Valley Bank on March 10, as a bank run ensued. New York regulators then took over Signature Bank on March 12.

Crypto total market cap at a little over $1 trillion on the weekend chart at TradingView.com

Several EU politicians have also recently taken aim at cryptocurrency, citing concerns about its potential to facilitate illegal activities such as money laundering and terrorist financing. Others have expressed similar sentiments to Van Overtveldt, arguing that cryptocurrency’s anonymity and lack of regulation make it a prime target for criminals.

This criticism has sparked a heated debate in the EU about the role of bitcoin and other digital currencies in the modern economy and its potential risks and benefits.

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– Featured image from Reuters

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