Report: The European Union Will Discuss Further Regulation of Cryptocurrency Due To the Lack of Their Transpare
As it became known, the ministers of economy and finance from 28 countries that are members of the European Union will hold an informal meeting devoted to problems related to digital assets and the possibility of tightening rules in the matter of their regulation.
According to the available information, all participants will discuss the general lack of transparency and the possibility of using digital assets for tax evasion, money laundering and terrorist financing.
European Office for Supervision of the Securities Market (ESMA) previously warned of the holding of the ICOs. In this case, the agency referred to the lack of understanding of investors and problems associated with the lack of regulation of financial activities. ESMA also noted that unregulated exchanges aren't protected due to the fact that their existence is outside the world financial rules. This allows us to say that consumer losses from such events will not be regulated by law.
Fifth directive of the European Union, related to the fight against money laundering, entered into force on July 9. The measures taken under this directive establish a new legal framework for European financial controllers in the matter of regulating digital assets. The new rules provide for the introduction of stricter requirements for transparency aimed at using "anonymous payments through prepaid cards" and "platforms for virtual currencies", used for the purpose of money laundering and financing of terrorist activities.
Note that in March ESMA introduced new rules, under which investors must have sufficient funds to cover at least half of the value of contracts.