Economic and Financial Ministers from the European Union will discuss the current challenges related to digital currencies and prospective regulatory reforms to tackle them.

Vienna (Austria) will gather the EU ministers on the 7th of September, whose agenda will be first focused on discussing the lack of transparency in the community and the risks associated with cryptocurrency usage. Cryptocurrency adoption is currently affected by the EU’s concerns related to the usage of cryptocurrencies for money laundering, tax evasion, and potential financing of terrorist networks and activities.

Investors were warned about Initial Coin Offerings by The European Securities and Markets Authority. The difficulties come with the lack of knowledge and unregulated financial activities. The ESMA alerted customers to use unregulated exchanges with caution. If they suffer a loss, the EU law would not cover it.

Besides the previous warnings, ICOs have positive qualities and they are an effective way to boost capital. Also, they could improve the integration of capital markets in the European Union.

On July 9th, the fifth Anti-Money Laundering Directive was established by the EU Authorities, which the main purpose is to regulate digital currencies. Furthermore, strict transparency requirements were formulated to inspect anonymous payments with prepaid cards.

Digital currency exchange platforms will be overseen in case of hidden money laundering or financing terrorist networks.

The European Securities and Market Authority (ESMA) increased the requirements needed for Contracts for Differences (CFD) in digital currencies. According to the regulation, investors must possess enough funds to pay for a minimum of half of the contract value at its start, which changes the cryptocurrency CFDs leverage from 5:1 to 2:1 at the time of opening.

The EU concerns are shared by the governments of countries as crypto rules are tightening not only in Europe. Regulators all around the globe are rewriting laws. In China, for example, there was a massive crackdown, whereas in Japan the government enacted an exchange-licensing regime.

The swinging prices of cryptocurrencies are an issue that many countries believe governments should try to interfere with. Another important concern of governments is that in many locations investors' rights and interests are not protected by any regulatory agencies.


Cryptocurrency ICO crypto china

Cookie Policy uses cookies to enhance your experience. By continuing without changing your settings, you agree to this use. To provide the best blockchain and crypto media on the web for free, we also request your permission for our partners and us to use cookies to personalize ads. To allow this, please click "OK". Need more info? Take a look at our Cookie Policy.

OK Cookie Policy