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Europe's Banking Watchdog Urges EU Commission to Put End to Patchy Crypto Regulations

  • Alex Morris
    📰 News

    Regulatory divergence remains one of the major pain points in the global crypto space, but Europe could be spearheading a change

Europe's Banking Watchdog Urges EU Commission to Put End to Patchy Crypto Regulations
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According to Financial Times, the European Banking Authority (EBA) calls for universal cryptocurrency regulations in the EU. That follows the EBA report, which states that digital assets do not fall under European financial laws, and a big number of approaches to regulating digital assets takes a toll on investors.

Financial Times

Divergent approaches

The main purpose of the European banking watchdog is to make sure that all EU members follow banking regulations. However, in the above-mentioned report, they looked beyond the banking sector and discovered ‘divergent approaches’ to dealing with cryptocurrencies.

The EBA floats the possibility of unfair competition between different countries as cryptocurrency businesses choose to operate in regulatory-friendly areas of the EU (case in point: Malta). Subsequently, it jeopardizes consumer protection given that all EU members can consume their products because of passporting rules.

A need for pan-EU rules

Now, the EBA encourages the European Commission to take revise its stance on cryptocurrencies and introduce pan-European regulations that would tame the ‘wild west’ of crypto. Notably, Commission VP Valdis Dombrovskis earlier said that crypto assets are not going anywhere despite the current ‘turbulence’.   

👉MUST READ European Officials Temporally Ditch Their Plan to Introduce Cryptocurrency Regulations

A global problem  

Given that cryptocurrencies are supposed to replace mainstream financial institutions, it is challenging to come up with a universal regulatory framework, which is similar to that of the traditional markets. The fears around legal discrepancies in the crypto sphere continue to grow. On Dec. 6, for instance, U.Today reported about a growing number of Bitcoin-related scams in Singapore, and the authorities find it hard to track down the criminals due to the fact that they are non-Singaporean residents.

Back in October, the Paris-based Financial Action Task Force (FATF), which poses as a global watchdog for money-laundering, revealed that additional cryptocurrency rules would be set by June.
 

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Ripple XRP Price Prediction: European Parliament's Interest in Ripple Can Legitimize Cryptocurrency

  • Jack Thomas
    🤷 Opinions

    Ripple and its XRP token are starting to permeate the thoughts and conversations in the European Parliament, which could spell legitimization for cryptocurrencies.

Ripple XRP Price Prediction: European Parliament's Interest in Ripple Can Legitimize Cryptocurrency
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Contents

Ripple has always been a cryptocurrency, with its XRP token, that has looked to regulators to get their okay before advancing too far along. Now, there is a lot of ice being broken between the cryptocurrency company and the European Parliament, which is starting to look into the benefits of cryptocurrencies.

Eva Kaili, a member of the European parliament, is a strong advocate of cryptocurrencies, and has been since 2014 when the cryptocurrency community viewed her with suspicion, as the belief back then was still that digital assets would be stifled by any form of regulation.

But now, she has been speaking at conferences organised by Ripple, as well as proposing blockchain regulation that is fair and friendly to the EU and is being met with appreciation and nods of heads rather than being shunned like she was before.

A lot has changed

It is interesting to see how the dynamic between cryptocurrency and regulators has changed over a few short years. There was suspicion on both sides of the coin, but as things have gone on, each side has realised the necessity of the other.

“When they heard I was a politician, they didn’t want me there,” she told the crowd gathered at the luxury Andaz hotel for the recent Ripple Regionals event in London, speaking of her first foray into a crypto conference.

“I believed that if we were not positive,” she explains, “the resistance of the traditional players would only increase and could even kill a technology that had so much potential for good.”

For the financial institutions, a lot has changed there as well. It used to be that many major banks and the likes saw cryptocurrencies either as a threat, or as a joke, but there is a lot of change happening, especially thanks to Ripple’s stance.

The presence of financial institutions at Ripple Regionals demonstrates how many are now seeing the value of using the technology to provide their customers with faster, cheaper and more transparent cross-border payments.

Making strides

Kaili in, in 2018, proposed a European Parliament Resolution that calls on the European Commission and the European Central Bank (ECB) to look into the sources of crypto-volatility, identify dangers and consider the possibility of incorporating cryptocurrencies into the European payment system.

She also wants to work towards standardization on all aspects of blockchain technology, from defining the status of digital assets to more transparency on ICOs and guidelines for resolving smart contracts.

These types of conversations would never have seen the light of day at such high level institutions and regulatory bodies as the European Parliament, but now they are, through the melding of two worlds.

The cryptocurrency space is begging to be regulated and accepted in the mainstream in order to reach a level of mass adoption, and at the same time, regulators are interested to see how this technology can change things for the better, thanks to cryptocurrencies which have been trying to push for adoption in institutionalised sectors.

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