A new published study by the European Parliament has identified a number of legislative blind spots pertaining to crypto asset oversight in the European Union.
In spite of the fact that different nations have handled the administrative difficulties presented by the worldwide, effectively available crypto resources, the national activities aren’t really lined up with one another, making the way for administrative exchange, finds an investigation on improvements of crypto resources and related administrative concerns and reactions, mentioned by the Committee on Economic and Monetary Affairs (ECON) – which, in addition to other things, is answerable for oversight of the European Central Bank.
“To avoid regulatory arbitrage,” argues the study, “rulemaking on cryptoassets should take place at the European level, preferably in the execution of international standards.”
The report asserts that cryptocurrency mining may be used as a vehicle by criminal organizations to “create clean cash”:
“NEWLY MINED COINS ARE BY DEFINITION ‘CLEAN’, SO IF SOMEONE (E.G., A BANK) IS WILLING TO CONVERT THEM INTO FIAT CURRENCY OR OTHER CRYPTO-ASSETS, THE RESULTING FUNDS ARE ALSO CLEAN. A FIRST REGULATORY STEP COULD BE TO TRY TO MAP THE USE OF THIS TECHNIQUE AND SUBSEQUENTLY, IF IT EFFECTIVELY PROVES AN IMPORTANT BLIND SPOT, TO CONSIDER APPROPRIATE COUNTERMEASURES.”
To battle new tax evasion dangers presented by crypto resources, EU legislators suggest the formation of a territorial Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) controller.
The parliament underlined that an European AML guard dog would possibly be viable in the event that it is set up with “highly trained IT personnel capable of analyzing the AML/CFT risks new technologies bring.”
Meanwhile, the European Commission launched a public consultation on the regulation of cryptoassets in December, awanting to strengthen its positions in the global payments market