To intensify the consumer protection, EBA (European Banking Authority) has called for new pan European Union rules.
The regulatory agency based out in London reached to the European Commission with the draft of EU legislation. The report summaries different laws for crypto assets applicable throughout the European Union. The report intends to protect the investors and the trades against the exploitation. The new rule will overrule the current patchwork of regulations, which has chances to derive the unfair competition across different European Union countries.
The report says the crypto asset falls out of the space of the EU financial service regulation. The divergent approach towards the same issue across the EU is giving rise to many problems like consumer protection, operation flexibility, and level payment field.
The EBA has suggested the EC that they should do something to bring all the nations under same crypto regulations, as its impact is beyond the banking industry. Cryptocurrency has been a matter of concern for the regulators from across the world.
The call from EBA has come just after FATF said that they are trying to put an end to the money laundering through the virtual asset. They also urged the countries across the world to keep vigilance on the virtual asset providers that include wallet providers, ICOs and exchanges. The global financial watchdog further added that mitigating the risk from money laundering will be their top priority in 2019.
The FATF president said that by June they are expecting the additional instructions to come how they will enforce them. FATF has also urged the European Commission to seek intragovernmental monitoring on illegal tax avoidance and report all the financial crimes.
FATF also said that strong steps should be taken to control the effect of crypto mining on the environment. As mining, the virtual currency like Bitcoin involves a lot of energy which in turn affects the environment.
The framework of regulations designed by EBA will provide stable support to the crypto companies and the consumers. EBA further stated that unless the Commission comes up with its crypto regulation framework, it will provide common monitoring so that the national regulators can obtain better information from them. They will also study the crypto related business so that they can understand which among them falls under financial regulation.