The European Union is resorting to cryptocurrency to protect its financial markets. "An innovative digital single financial market will benefit Europeans and will be the key to Europe's economic recovery by offering consumers better financial products and opening up new funding channels to companies," said Valdis Dombrovskis, Executive Vice President of the European Commission.

"Integrated and convergent supervision is needed to ensure a true level playing field to all market players," is stated in the EU latest action plan on how to develop the so-called Capital Markets Union project. "This will be especially important in the post-Brexit world with several financial centres across the EU."

Under the new rules, crypto-companies such as trading platforms would have to have a physical branch in the EU and be subject to capital requirements, the commission said. The most important stablecoins would then be overseen by the European Banking Authority.

Performance of BTC/USD (Source: Tradingview.com)