Cryptocurrency is not an ‘easy go’ topic in the Europe Union (EU). Besides the Financial task force’s initiation of ‘stopping crypto money laundering within Europe’, a report was released in connection with the digital money.
Crypto Wallet and Crypto Trading Needs Pan-EU Rules
European Banking Authority (EBA) is a London based regulatory agency that has reached out to European Commission in a matter of cryptocurrency rules within EU. The report denotes customers’ interest over the hype of crypto economy, as the prime concern of EB, henceforth, urging ‘pan-EU’ rules for cryptocurrencies. Subsequently, the new set of rules would consider further analysis to better define regulated services for crypto matters in EU. A note of the report reads,
“Typically, crypto-asset activities do not constitute regulated services within the scope of EU banking, payments, and electronic money law, and risks exist for consumers that are not addressed at the EU level,”
EBA report released on January 09, 2019 is a result of the findings of EBA’s analysis carried out as per its March FinTech Roadmap. Nevertheless, the findings did reveal that the present ‘crypto activity’ within EU is ‘relatively limited’ and few services including crypto wallets and crypto trading platform doesn’t fall under EU-level financial services law. It added that these services might be compliance for some national laws but ‘such roles aren’t consistent across the bloc’. These deviating approaches bring various potential issues such as ‘consumer protection, operational resilience, and the level playing field’, the report reads.
Besides the report, Ardo Hansson who is the policy maker at European Central Bank called ‘cryptocurrencies as a fairytale’. While predicting the future of crypto assets, he said that ‘the future would turn into a complete load of nonsense’.
What it all Means for Bitcoin and Investors?
Furthermore, the lawmakers in member countries might receive a ‘paperwork from EBA’. They urged that industry require ‘transparent system’ that caution public against the risk dealing in cryptocurrency matter. In a similar matter, the report notes that;
“The EBA will keep under review the need for any further actions within the scope of its statutory competence and stands ready to support the European Commission in relation to any further analysis of issues arising in relation to crypto-assets.”
EBA’s call would likely bring ‘more stable legal rules’ for investors, customers, and companies dedicated to offering crypto services. This global concern on cryptocurrencies such as Bitcoin would ensure investors and VCs a sense of confidence to eye on crypto investments besides potential risks. Moreover, unless there is a ‘crypto framework by commision’ EBA will undertake a common monitoring procedure to help task force obtain accurate data from firms. Also, it will continue to analyze the business model of various crypto-oriented businesses.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com