European Banking Authority Report Urges Steady Approach to Cryptocurrency Regulation
The European Banking Authority (EBA) has recommended further research into cryptocurrency and will perform “a number of actions” relating to the sector in 2019. The agency has said this in its latest report published Jan. 9.
In the document, which focuses on the “applicability and suitability of European Union law to crypto-assets,” the EBA appeared broadly unhurried about developing new regulatory frameworks for the bloc.
“Typically, crypto-asset activities do not constitute regulated services within the scope of EU banking, payments and electronic money law, and risks exist for consumers that are not addressed at the EU level,” a summary of the report reads.
“…[T]he EBA recommends that the European Commission carry out further analysis to determine the appropriate EU-level response.”
The broader stance of the EU on cryptocurrency has been hard to gauge. Despite numerous reports into various aspects of the industry and its use, officials continue to present contrasting views in public.
This week, European Central Bank policy maker Ardo Hansson described crypto-assets as a fairytale and forecast the future would turn them into “a complete load of nonsense.”
The EBA says that it intends to issue paperwork to help authorities in member countries report financial activities in a more uniformed way. The organization further highlighted the need for transparency and suitable public warnings about the risks involved with cryptocurrency.
About its future actions, the report states:
“The EBA will keep under review the need for any further actions within the scope of its statutory competence and stands ready to support the European Commission in relation to any further analysis of issues arising in relation to crypto-assets.”