Europe's financial regulators have chimed in with the pointed warnings arising from governments and financial bodes around the world, by articulating stark warnings that the bitcoin bubble may be about to burst, leaving its investors vulnerable to massive losses.

After Bitcoin's tumble down to $11,841, from the dizzying heights of roughly $20,000 at the close of 2017, Europe has been keen to take note of the latest developments and have decided to act on them. The Commission vice president Valdis Dombrovskis, recently penned a letter to EU financial watchdogs asking them to warn investors that the crypto bubble was about to burst, as well as calling for them to assess the potential dangers of bitcoin.

Plans have also been put into motion by the EU's executive arm to develop policies to help guide the use of blockchain. EU politicians have also been vocal about the need for regulations. Bruno Le Maire, the Finance Minister of France, has made a strong case for greater regulation. The minister called on Deputy Governor Jean-Pierre Landau to investigate the dangers of cryptocurrencies, urging him to investigate the potential opportunity for crypto to be utilised for criminal means, such as terrorism and money laundering.