The European Banking Authority urged the European Commission to take the necessary steps towards drafting pan European rules regulating the crypto currency sector, because the currently existing mishmash of national rules in some EU countries, and the lack of such in others, provides a fertile ground for money laundering and scam schemes.
The conclusions of the European Banking Authority (EBA) are based on a year long study and are cited by the Financial Times.
EBA oversees the implementation of the EU law regulating the banking sector throughout the Union. According to the Authority the European Commission should prepare a cost-benefit analysis about extending regulation over the crypto sector.
“Typically crypto-assets fall outside the scope of EU financial services regulation. Moreover, divergent approaches to the regulation of these activities are emerging across the EU. These factors give rise to potential issues, including regarding consumer protection, operational resilience, and the level playing field.”, EBA notes.
In October the Financial Action Task Force – an international body where the European Commission participates, warned that preventing crypto assets from being used to launder money is a key priority and that all countries should start supervising the so called crypto exchanges, as well as all those who provide financial services for initial coin offerings.