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European Banking Authority calls for new crypto asset rules

Regulation race

bitcoin

The European Banking Authority (EBA) has called for new pan-EU rules on crypto assets in a bid to heighten consumer protection.

According to an official report released today, the new set of rules would override the current patchwork of different crypto asset regulation across the EU, which could derive in unfair competition across countries.

“Typically crypto assets fall outside the scope of EU financial services regulation,” reads the report.

“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.”

Cryptocurrency has long been the cause of headaches for regulators across the globe as they set out to find a way to control the very system designed to circumvent mainstream financial institutions.

Back in October, the Financial Action Taskforce (FAFT) said that putting a stop to virtual assets being used to launder funds was its top priority for the year. It also recommended that countries begin to supervise “virtual asset providers”.

The EBA’s call-to-action comes as the price of bitcoin hovers slightly above the $4,000 mark, a stark contrast from when it was worth almost $20,000 in December 2017. 

Published January 9, 2019 — 11:11 UTC