European Union Should Adopt Common Crypto Regulations – Belgian Think Tankbr>
Brussels-based think tank Bruegel is urging European Union leaders to adopt common rules on cryptocurrencies and scrutinize how they are distributed to investors.
In a report prepared for EU finance ministers, Bruegel argues for EU-level regulation of crypto exchanges and clearer rules on initial coin offerings (ICO) to control investor risks and incubate growth for the industry. The report said that regulation of bitcoin as such is impossible because of their virtual nature, but entities operating crypto trading platforms could be subject to stricter disclosure rules or even be banned.
Bruegel added that there may be a “scope for regulatory arbitrage” following a crackdown on exchanges in some Asian countries, citing the planned Binance move to Malta. However, the think tank said that regulators should tolerate crypto exchanges seeking jurisdictions with lighter regulation for some time “to experiment and learn about the best approaches to this fast-developing technology.”
The report is due to be presented to the economic and financial affairs ministers who are meeting on Friday and Saturday in Austria. Participants will reportedly discuss a general lack of transparency and the potential for cryptocurrency to be used for tax evasion, terrorist financing and money laundering.