European Union to freshly examine the status of cryptocurrencies in the member countries, reported Bloomberg on August 29.
Ministers of Finance, from 28 member states are all set to discuss the matters around the growing popularity of digital assets and its possible challenges. Including, the regulation of cryptocurrency, lack of transparency, its misuse through money laundering, tax evasion, and terrorist financing, as seen in a draft note for September 7 meeting to be held in Vienna, included the Bloomberg report.
Issuing a warning previously against ICO’s, The European Securities & Markets Authority (ESMA), specified the lack of customer knowledge and understanding as a key issue behind this unregulated financial activities. The authority noted that these exchanges are unprotected, as they exist outside of the global financial sphere and E.U. laws, and as consequence customers here loses much more in an unprecedented event like the cyber attack.
The document reportedly seemed more inclined towards taking harsh measures to control the new technologies unleashed by digital currencies. It further said, Initial Coin Offerings “have established an effective and efficient way to raise capital,” and could be beneficial if integrated with the capital market in the bloc.
Since July, The Fifth Anti-Money Laundering Directive of E.U. is in effect. This established the new framework in terms of legality to monitor activities regarding cryptocurrencies. The rules are aimed to tighten the rope for money launderers and terrorists by strengthening the transparency terms while using “anonymous payments through prepaid cards” and “virtual currency exchange platforms”.
The cloud of regulations around cryptocurrency are not something new, after the scamester year of ICO’s in 2017; countries are fastening the seatbelts to avoid any such debacle.
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