European Parliament Member Calls for Ban on Crypto Amidst Banking Crisis

Joshua Ramos
Source: HLN

Former Belgian Finance Minister and European Parliament member, Johan Van Overtveldt, has called for a ban on crypto amidst the current banking crisis. Specifically, Van Overtveldt says the digital asset industry provides “no economic or social value.”

The statements came in a tweet from the former Belgian official, speaking on the current panic within the banking sector. Interestingly, Coindesk reports that the comments arrived as European Parliament is preparing “to vote on landmark crypto licensing rules for the bloc.”

Former Belgian Official Attacks Crypto

The banking sector has been infused with renewed panic following several concerning developments. Specifically, Silicon Valley Bank and Signature Bank collapsed in the US, followed by turmoil with Europes Credit Suisse, and a historic rescue plan to save First Republic Bank.

Now, former Belgian Finance Minister and European Parliament member, Johan Van Overtveldt has called for a ban on crypto amidst the developing banking crisis. Moreover, he took to Twitter to share his thoughts on the state of the industry, and crypto’s role.

European Central Bank Raises Interest Rates by Basis Points Amidst Banking Chaos
Source: Council on Foreign Relations

“Another lesson to be learned from the current banking commotion. Enforce a strict ban on cryptocurrencies,” Van Overtveldt stated. Additionally, labeling the digital assets as pure speculation, containing, “no economic or social value.” Interstingly, Van Overtveldt added, “If the government bans drugs, it should also ban cryptos.”

The contagion from the fall of crypto-friendly bank Silvergate, and Silicon Valley Bank, has perhaps informed the former Belgian official’s stance. Undoubtedly feeding into a narrative that may have spelled doom for Signature Bank. As board member Barney Frank stated its closure sent “a strong anti-crypto message,” from regulators.