European Banking Authorityy Advises European Commission to Assess Common Crypto Approach
The European Banking Authority (EBA), a regulatory agency of the European Union, has released its evaluation into the program of EU legislation to crypto assets. The bureau, which is based in London, recommends that the European Commission tables a result of the dangers regulators connect with the area like money laundering.
In the report published on Jan. 9, the EBA assesses the use of present EU banking, obligations, e-money and anti-money laundering legislation to crypto resources, wallet providers and trading platforms, in addition to the associated activities of credit institutions, investment companies, payment associations and electronic money institutions.
It decides the present relatively low level of such action from the EU will not produce a threat for monetary stability. However, the bureau also found that actions between crypto assets typically fall beyond the reach of EU banking, payments and electronic money regulation. It considers that this increases risks for customers which aren’t addressed at EU level.
The report additional information that, as a consequence of the evolution of national level responses, regulatory gaps between European nations have started to emerge. It fears these current risks to this level playing field the marriage is supposed to keep involving its members.
After the findings of this report, the EBA has proposed that the European Commission to make a extensive cost/benefit analysis to ascertain what action is expected in the EU level at this phase. The bureau also advises the commission to notice the recommendations of the Financial Action Task Force in October 2018, also to take action to promote consistency in the accounting treatment of crypto assets. The banking regulator also aims a range of measures to consider in 2019 so as to improve the observation of associations’ actions and consumer-facing disclosure practices.
The EBA calls on the European Commission to evaluate whether regulatory action is required to attain a common EU approach to crypto assets. The EBA proceeds to monitor market changes by a prudential and customer standpoint.”