European Banking Authority calls for clarity on bitcoin regulation

Regulation | August 15, 2016 By:

The European Banking Authority (EBA) has called for more precise definition of the regulatory status of digital currency exchanges and custodial wallet services.

The group, which counts more than 100 major banking institutions as members, offered comment on a prior proposal from the executive branch of the EU to bring exchange and wallet services under the Anti-Money Laundering Directive. Proponents say the move would end the perceived anonymity of purchases and transactions conducted using the technology.

In addition, the EBA claimed that clarifying the regulatory status of digital currency platforms could help avoid the risks of misrepresentation which potentially could be a serious issue in the virtual currency market.

The EBA also added that clarifications to these amendments are required, and competent authorities across the EU should be equipped with the appropriate tools to effectively supervise the proposed regulation.

“The Commission and co-legislators should ensure that competent authorities have the appropriate tools at their disposal to ensure the effective supervision of [custodial wallet providers] (CWPs) and [virtual currency exchange providers] (VCEPs) compliance with their AML/CFT obligations,” the EBA said.