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’.