European Banking Authority calls for Crypto Common Regulation

European Banking Authority calls for Crypto Common Regulation

The European Banking Authority issued a report calling for further research and a comprehensive and universal regulation on cryptocurrencies according to a paper published on January 9.

The document says that for now, the Cryptocurrency and Blockchain activity in the EU remains limited, but it is essential to the Commission and state members to act now before it could hinder financial stability.

Crypto assets are outside the control of the European Union financial services regulation and crypto activities, custodian wallets and crypto exchange “do not constitute regulated activities under EU laws.”

Following that, the EBA highlights that “divergent approaches to the regulation of these

activities are emerging across the EU,” with different countries signing different laws for an activity that crosses internal borders.

“These factors give rise to potential issues,” the paper says, “including regarding consumer protection, operational resilience, market integrity and the level playing field.”

As a matter of framework, France and Germany are about to launch new rules on cryptocurrencies regulation, as well as Spain and Italy are planning to debate rules in 2019.

So, the EBA, acknowledging the fast evolution of the crypto assets usage, developed the paper that works in three different areas:

  1. Application of current EU banking, payments, e-money and anti-money laundering laws to crypto-assets.
  2. Crypto-asset custodian wallet providers and crypto-asset trading platforms
  3. Credit institutions, investment firms, payment institutions and electronic money institutions involving crypto-assets and regulatory and supervisory issues.

EBA’s Next Steps for Vigilance on Cryptos in 2019

In this framework, “the EBA sets out in the report advice to the European Commission regarding the need for a comprehensive cost/benefit analysis, taking account of issues inside and outside the financial sector, to determine what, if any, action is required at the EU level at this stage.”

Also, the EBA advises the European Commission “to take account of the October 2018 recommendations of the Financial Action Task Force (and any further standards or guidance) regarding, in their terminology, ‘virtual asset’ activities, and to take steps where possible to promote consistency in the accounting treatment of crypto-assets.”

Adam Farkas, EBA Executive Director, affirmed that “the EBA’s warnings to consumers and institutions on virtual currencies remain valid.”

Frakas emphasises that “the EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”

Finally, the EBA published a series of steps that the institutions will take in 2019 to monitor crypto assets activities in financial institutions, including consumer and retail disclosure practices.

Actions like the development of a standard monitoring template that authorities will release to organisations to check levels and types of crypto activities. EBA will also review disclaimer activities and information to customers regarding the risk of investing in crypto assets.

EBA Against Central Bankers

EBA is taking an antagonistic position from some European policy makers, like Ardo Hansson when he said earlier this week that crypto assets were a fairytale and he forecasted the future of cryptos would become “a complete load of nonsense.”

Estonia’s Central Bank governor and a member of the Governing Council of the European Central Bank Ardo Hansson affirmed that “the bubble has already started to collapse and maybe we should just see how far this collapse goes, and what is left when we have reached a new kind of equilibrium.”

In a conference in Riga, Hansson continued saying: “I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story.”

Recently Similar News

Latest Guides

Latest News


Binance Reviews The Month In Cryptocurrency And Highlights DeFi

Binance, the online cryptocurrency exchange, has released their monthly review, highlighting the historic rise of decentralized finance. Binance, the largest cryptocurrency exchange in the world by volume, has recently released their monthly review of the cryptocurrency space, highlighting the massive growth in the decentralized finance (DeFi) sector. Besides the launch of Binance Smart Chain, Binance […]

18 September, 2020

CoinMarketCap Identifies Bullish Events for Bitcoin and Explains the Drama Behind SushiSwap

CoinMarketCap, the world’s largest cryptocurrency market cap aggregator, has released an opinion piece on events surrounding Bitcoin and all the drama behind the SushiSwap saga. CoinMarketCap, the large online cryptocurrency market capitalization aggregator, has created an analysis on events surrounding Bitcoin and the craziness surround the latest DeFi craze, SushiSwap. The main event related to […]

18 September, 2020
Decentralised,Ethereum,Exchange Platforms,Trading

Uniswap Launches UNI Governance Token With Airdrop

Uniswap, the large decentralized exchange, has recently launched their governance token, UNI, and have given away 15% of the token to users. Uniswap, the Ethereum based decentralized exchange and decentralized financed (DeFi) application, have recently launched the governance token, UNI, and have airdropped a large portion of the token supply. All in all, Uniswap distributed […]

17 September, 2020
Bitcoin,Changelly,Cryptocurrency,Exchange Platforms

Changelly Explains The Concept of Short Selling

Changelly, the online cryptocurrency exchange, has recently released an article on short selling and how you can take advantage of it as a user. Changelly, the larger online cryptocurrency exchange, has created a blog post highlighting short selling and what their users can do to take advantage of this trading feature. Short selling can take […]

16 September, 2020
Cryptocurrency,Exchange Platforms,IQ Option,Trading

IQ Option Identifies Habits of Successful People With “Million Dollar Habits”

IQ Option the online cryptocurrency exchange and CFD platform, has identified a few million dollar habits that successful people tend to follow. IQ Option, the cryptocurrency trading and CFD platform, has created a blog post highlighting “Million Dollar Habits” or habits that are frequently seen across successful people. The post starts by identifying the “stereotypes” […]

16 September, 2020

Binance Introduces and Launches A Second Project: The Wing Project

Binance, the largest online cryptocurrency exchange, is launching a new project known as The Wing Project, a cross-chain DeFi platform for Binance users. Binance has recently launched their second large project, The Wing Project, which will continue to bring more DeFi applications to Binance users. The Wing Project is a “credit based, cross-chain DeFi platform” […]

15 September, 2020

CoinMarketCap Launches The CoinMarketCap Earn Campaign With Kava

CoinMarketCap, the largest online cryptocurrency market capitalization aggregator, has launched their Earn Campaign with Kava. CoinMarketCap Earn, a subsection of CoinMarketCap, the cryptocurrency market capitalization aggregator, allows users to earn tokens in exchange for learning about the background of the token. CoinMarketCap facilitates this program by creating educational videos about the token’s background, properties, and […]

15 September, 2020

Kraken Exchange To Cut All Futures Taker Fees For All Traders

The Kraken cryptocurrency exchange will be cutting taker fees across the board for all of its traders. Kraken, the online cryptocurrency exchange, will be cutting all taker fees across the board for all of its traders. Kraken will be cutting taker fees by at least 33% for all of their clients (from 7.5bps to 5bps). […]

15 September, 2020