certify
Home arrow Article arrow Article Detail

The Committee of the European Parliament Advised for Crypto Rules as per International standards

Profile Image

Jayashree Ingle Follow

INDIA

Apr, 14 2020

Apr, 14 2020

likes | comments 0

Article Image

The Committee by the European Parliament has published a study finding the ambiguities in the crypto regulations at the international level. The report includes the developments of crypto assets, regulatory concerns, and responses at the international level. The report had been prepared at the request of Committee on the Economic and Monetary Affairs (ECON) which oversights the European Central banks and their financial infrastructure.

The Report emphasizes the necessity for bringing the stable coins, fundraising through tokens, and the money laundering through crypto mining under regulations.

The report states that to avoid the regulatory arbitrage, rulemaking on crypto-assets should place at the European level, preferably in the execution of international standards.

The report also emphasizes the continuation of the cooperation of the Financial Action Task Force (FATF) and the European Union. It also advises the EU to align with FATFS’s international standards.

Crypto Mining Identified as Money Laundering Threat

The report reveals that crypto mining can be used as a vehicle for crimes by criminal organizations.  

The report states that the newly mined coins by definition of law are considered ‘clean’. So if any bank or any other entity is willing to convert them into fiat currency or other crypto assets, the converted amount will be considered as clean as well. So the first regulatory step could be to seek the technique and should be utilized subsequently. It proves to be an important blind spot, it can be considered as a countermeasure.

Stable coins – a new challenge for regulators?

The report discloses that most stable coins in circulation, are explained as having a ‘local footprint.’ However, the parliament notes that the rise of global stablecoins like Libra from Facebook could poses challenges to the regulators.

The parliament is actually concerned with the observations of economist John Vaz which sees Libra as a big threat.

The function of the Committee of Economic and Monetary Affairs (ECON)

The Committee of Economic and Monetary Affairs (ECON) is a Committee under the European Parliament which looks after the regulations of financial services. Oversights European Central bank and international financial systems.


likes | comments 0

Profile Image

Jayashree Ingle

CBW - External Analyst

INDIA

Comments
Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.