While digital currencies seem to be losing value given the massive bear going on at this moment in time, institutions, governments and international organizations throughout the world are showcasing an increased interest towards blockchain, the underlying technology of bitcoin and many other cryptocurrencies.

With this aspect in mind, recent reports indicate that the European Commission has decided to launch their very own EU Blockchain and Observatory Forum, in order to boost blockchain-related projects within the European Union. For those who do not know, the European Commission is the executive body of the EU, in charge with legislative initiative, budget management and control over other EU institutions.

During the last couple of months, the position of the European Commission concerning digital currencies has gradually changed. To fulfil their goal of preventing terrorism financing and money laundering, the legislative body has decided to create a database of digital currency users and record bitcoin transactions.

Not only is this against the principles of anonymity and transparency that bitcoin and other digital currencies strive for, but many believe that the decision is also morally wrong. According to recent reports, the Commission believes that a regulatory framework for digital currency platforms must be formed as soon as possible, as they aren’t monitored nor observed by the European authorities.

During the last couple of months, Bitcoin has been the subject of discussion for numerous government meetings, looking for new ways to regulate the digital currency.

According to recent reports, last week, The European Commission published a directive draft including a couple of proposals for the future of Bitcoin. With this in mind, it means to extend anti-money laundering regulation to exchanges and bitcoin wallets. The reason behind this is to help counter tax evaders, fraudsters, terrorists, money launderers, drug dealers and other criminals.

After numerous government studies have been carried out upon bitcoin criminality, law enforcement agencies have chosen to remain vigilant, to foresee any events before they happen.

With this in mind, recent reports indicate that European officials believe that bitcoin can be and is used to fund terrorist groups, due to the currency’s anonymous state. Based on this, the European Commission (EC) wants to put an end to anonymous trading with digital currencies.