European Banking Commission calls for new unified legislation on digital assets
The European Banking Authority has published its assessment of laws on the origins of digital currencies and urged the European Commission to develop new EU rules that would increase consumer protection.
Current EU rules allow manipulation
The EU could implement a new set of laws on the digital currency sector the following year, with the EU’s chief regulator calling for tightening regulations on this modern sector.
The European Banking Authority (EBA) has published its long-awaited assessment of the applicability and appropriateness of the EU Digital Currency Act. The report, published on 9 January 2018, analyzes and uses digital assets within the European Union, as well as examining the laws of the European Union governing them.
According to the report, digital currencies are not yet regulated by the EBA, meaning that EU consumers are more likely to be manipulated and fraudulent activities plagued by the sector since its emergence.
The main banking body in Europe is calling for more rules
The EBA is the main banking authority of the European Union and is responsible for implementing banking systems and other financial systems in all EU member states. The European Commission, which puts all legislation in the EU, has gone through a difficult year before it plans to comply with all the recommendations made by the EBA.
The Commission called for a comprehensive cost-benefit analysis to determine the course of action to be undertaken at the EU level.
The EBA report comes at a difficult time for the digital currency sector, adding to the growing digital assets of government pressure worldwide. According to the Financial Times, the anti-money laundering task force has long pointed out that criminals are taking advantage of the lack of regulation in the digital currency sector.
In October 2018, the Financial Action Task Force (FATF) said that targeting money laundering in the digital currency sector was a top priority. FATF has also called on EU states to increase their oversight of digital currency platforms and ICO operations, as they are often hot spots for criminal activity.
EBA has called for the recommendations of the Financial Action Committee for consideration by the European Commission, a move that could have a significant impact on the sector as a whole. The massive sell-off that started the current bearish market has caught on concern over increased regulatory scrutiny, raising questions about the impact of the EBA report on the proxies and digital currencies in 2019.