New post
George Ma
in
Crypto
April 13 11:33

European Parliament to expand regulations of the crypto industry

This also concerns persons involved in the mining of cryptographic currency.
46
0
Fifth EU Anti-Money Laundering Directive (AMLD5) no longer meets the stricter FATF standards, and in order to sync its approach with the international one European Parliament recommends expanding the concept of cryptocurrencies and the list of related regulated companies in the EU. This is the subject of a new report published this week by the organization.

The expert group that presented the report notes the significant growth of token-based platforms and proposes to introduce "private tokens" as a subcategory of cryptocurrencies.
Document also says that the current regulation does not include some participants in the crypto industry, including exchanges that do not support fiat currencies. Such enterprises, the authors of the report say, must also comply with AML (anti-money laundering) requirements.
In addition, the document draws attention to persons involved in the mining of cryptographic currency.
"There are coins, the mining of which does not necessarily require large servers-farms with high energy costs. Such coins can be mined on several hardware installations at home, and the installations themselves can belong to anyone, including criminals," the report says.
Its authors emphasize that the new coins are by definition "clean", and if someone, such as a bank, is ready to convert them into fiat currency or other crypto asset, the funds received will also be clean.
To solve this problem, the first regulatory step may be to identify the methods used and then take appropriate countermeasures. At the same time, it is proposed to release the developers of coins and suppliers of non-castaodial wallets from liability, as they provide only the technological infrastructure.
The report also says that cryptocurrency is characterized by increased volatility, which results in increased risks for investors. Cryptocurrencies are more difficult to fit into existing financial legislation.
The best way to solve this problem may be to exclude cryptocurrencies from own assets of financial institutions, urging European regulators to classify unregulated cryptocurrencies as high-risk assets.