Meeting on 7 and 8 September, the Ecofin ministers also agreed to closely monitor developments in virtual currencies, according to a press release from the Luxembourg government.

The decision comes after the value of one of the most well-known crytocurrencies, bitcoin, lost 70% since its $20,000 peak in 2017.

The most recent fall was blamed on macro trends, speculation, regulatory uncertainty, short selling and scams, according to CNN.

While Luxembourg financial regularor the CSSF warned the public earlier this year about substantial risks associated with trading in cryptocurrencies, it has has licensed bitcoin exchanges Bitflyer and Bitstamp.

Luxembourg finance minister Pierre Gramegna warned of the risks of overregulation and called for a fair balance between freedom of innovation and development on the one hand, and the interests of investor protection and maintaining financial stability on the other.

The press release added that “Where appropriate, a European framework may be necessary to ensure coherence within the single market.”

Ecofin ministers also called for a global level playing field on any future framework for the virtual currency market.

On the topic of taxing the digital economy, OECD secretary general José Angel Gurria stressed the need for a multilateral approach. He said that progress was being made in defining a new international tax system for the digital economy, as an extension of the Beps initiative. An intermediate project on this subject will be presented in 2019, before the plan is finalised for 2020.

Luxembourg supports a comprehensive digital taxation solution negotiated at OECD level.