The European Banking Authority (EBA) has published the report of its assessment concerning the suitability and applicability of existing financial laws to cryptoassets. The body has made it clear that the European Union Commission needs to study the blockchain space extensively to enable it to formulate robust laws capable of governing the entire continent, according to a press release on January 9, 2019.
EU Wide Crypto Regulation Essential
In its report, the EBA noted that financial transactions involving bitcoin and other cryptoassets do not constitute regulated services within the jurisdiction of EU banking, payments and electronic money law and as such, there are no significant consumer protection mechanisms in place.
The agency also stated that the lack of an EU level regulation for cryptoassets also makes it easy for bad actors to use them in aiding their unlawful practices, including money laundering.
Specifically, the agency said that that the existing laws governing cryptocurrency exchange platforms as well wallet providers are not robust enough; moreover, different member states of the European Union have taken it upon themselves to draft own specific guidelines for cryptoassets, making it almost impossible to have a level playing field.
For instance, nations such as Gibraltar and Malta are fast becoming a hotbed for blockchain-based businesses due to their liberal stance and amenable rules for cryptoassets.
The EBA noted
“In some EU member nations, legislative measures have been promulgated or are being considered to create new classes of activity involving cryptoassets trading platforms or wallet provision for which some sort of custom regulation or registration is required, driven primarily by concerns about consumer protection”
Further Analysis Needed
EBA has further stated in its report that since the current EU financial services law does not apply to a vast array of crypto-related activities, including cryptocurrency trading, custodial services, and others, it is pertinent for the European Commission to carry out more extensive studies on the cryptoassets industry using various approaches to find out more about opportunities and risks in the space and how to regulate it.
While the EU Is busy brainstorming on ways to regulate the cryptospace, it’s worth noting that bitcoin and other digital assets keep waxing stronger with each passing day, regarding adoption.
On January 9, 2019, BTCManager informed that that Ripple, a blockchain-based payments platform in charge of the XRP altcoin had added 13 new clients, bringing its total customer base to 200.
In related news, BTCManager reported on January 9, 2019, that HashCash cryptocurrency payments network had expanded operations to South Africa.