Valdis Dombrovskis, the European Union's financial services commissioner, said he intends to create a new regulatory framework for cryptocurrencies, particularly Facebook’s Libra stablecoin.

“Europe needs a common approach on crypto-assets such as Libra. I intend to propose new legislation on this,” Dombrovskis said in a confirmation hearing seeking for reappointment on Tuesday with EU policy makers.

The former Latvian prime minister has been a vice president of the European Commission for the euro and social dialogue since 2014. He is one of the 28 commissioners in the European Commission from 2014 to 2019 and has been in charge of financial stability, financial services and capital markets within the EU.

Dombrovskis' comment comes on the heels of an increasing level of scrutiny by the European Commission over Facebook's Libra cryptocurrency initiative.

The Financial Times reported on Monday that the commission last week sent a questionnaire to Facebook and the Libra Association, asking them to address various questions regarding financial stability, money reserve and private risks related to Libra.

According to the report, the questioning was part of a push by Dombrovskis to examine how the EU should allow or regulate crypto initiatives like Libra and whether new laws will be in need. It said Dombrovskis has indicated there is a “strong willingness to act at an EU level” when it comes to Libra.

Just last week, Paypal, one of the big-name members in the Libra Association, formally withdrew from the Facebook-led initiative.

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