According to Western media reports, the European Union is considering tightening regulations for cryptocurrencies such as Bitcoin, Ripple and Ether.
According to Bloomberg, EU economy and finance ministers will hold an informal meeting in Vienna next week to discuss issues related to cryptocurrencies. Many of the meeting participants have already expressed their concerns that cryptocurrencies lack transparency and are being used as a means of tax evasion, terrorist financing, and money laundering. These participants are demanding the introduction of stricter rules of the game in the crypto market.
The latest EU anti-money laundering bills came into force in July. These bills would provide a regulatory framework for regulating digital currencies.
The laws aim to provide greater transparency by limiting the ability to make anonymous payments using prepaid cards.
Three EU financial regulators warned potential investors in February about the risks associated with buying and holding cryptocurrencies.
“Virtual currencies currently available for purchase are assets that are not issued or guaranteed by central banks or government authorities and therefore do not have the legal status of money,” said a document jointly issued by the European Securities and Markets Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority. - "Such currencies are associated with high risks, they are usually not backed by any tangible assets, and they are not regulated by European law. Based on this, it can be argued that they do not guarantee legal protection for consumers."
You May Also Like
China is putting pressure on cryptocurrencies: what will happen to the market?
On September 24, the Central Bank of China declared all transactions with cryptocurrencies illegal. The ban also applies to foreign exchanges providing services to Chinese citizens. How did the crypto market react to these actions and what should investors expect now?
China will continue to put pressure on cryptocurrencies
A representative of the People's Bank of China said that citizens should be wary of crypto investments.
