EU Policy Makers Debate Unified Approach to Crypto Risks
According to Bruegel think-tank’s latest analysis for the upcoming EU finance ministry meeting, a Pan-European Union approach to targeting exchanges and ICOs is required across the region.
Reuters reported Wednesday that through a unified approach to policymaking, the Bruegel non-governmental organization urges EU ministers to regulate digital assets and the greater crypto market with Europe. In this regard, the European nations would implement common regulations directed at companies managing cryptocurrencies rather than aim to control the otherwise decentralized nature of BTC and other digital coins.
Likewise, a not-for-profit based in Brussels agreed with the urgency for a unified regulatory front regarding ICOs due to their increased popularity throughout 2018. Given that the European Union supplies 30% of the total ICO market globally, regulation has become a pressing issue across the region.
Banning Crypto Creation and Mining
The Bruegel think-tank team went as far as to suggest banning the future creation of digital currencies and mining activities. As Reuters reported, the team referenced China’s prohibited mining rig operations as an example of how this could be achieved.
European Union finance ministry officials are set to host a meeting this weekend to discuss the topic of cryptocurrency among other issues within the agenda. EU presidency chair, Austria, has agreed to hold discussions of a unified policy for addressing all risks associated with virtual assets.
Europe and the Crypto Market
Currently, European nations lack a common policy regulating crypto activities, however, has initiated various steps to impose rules on the overall industry. According to a recently adopted revision of the EU’s policy for money laundering, crypto exchanges offering trading between digital assets and fiat currencies were now under AML enforcement. However, these restrictions do not affect exchanges strictly trading crypto coins.
In addition, companies based on cryptocurrency dealings within the European Union have also been subject to anti-money laundering regulations particularly concerning enhanced transparency for owners. In August, the ESMA put in place a limit of two to one regarding a form of derivative trading known as CFDs. This limitation will continue for a three month period with the option to renew this coming November.