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Just In: Europe's Central Bank To Raise Warning Over Crypto Laws


coingape.com 04 July 2022 12:18, UTC
Reading time: ~2 m

The European Commission (EC) has already shown its concern over the need for strict crypto regulation. In this bid, the European Central Bank (ECB) will be issuing a warning to the Eurozone countries over it.

ECB highlights rising strain

According to a report by Financial Times, the ECB will be notifying the countries of the danger of national regulating authorities for lacking awaited EU cryptocurrency rules. It mentioned the rising difficulties of launching efficient oversight will be highlighted.

ECB will be citing the urgent need for “harmonisation” at a meeting among the supervisory board this week, the report added.

The central bank has shown a major concern over the remaining and messy work of the national regulations governing. This has overlapped the work between the banks and crypto companies before the 18 months from implementation. However, the package is set to become law by the next year.

A National regulator from one of the Eurozone countries mentioned that it is “very challenging”.

“With Mica 18 months away, are you better to say, ‘until it’s in, do what you like, there’s no regulation’ or are you better to try to get a handle on it?”, it further added

Nations taking proactive efforts against crypto

As per the report, Germany has taken the most proactive efforts to tame virtual digital currencies. The nation has also implemented the EU’s 2020 anti money laundering directives. This has been used against the companies holding crypto assets in the name of the clients.

The Central Bank has shown concerns regarding adjudicating digital assets related licenses pursued by the banks. However, there is no pan European framework in place. This matter will be discussed with the broader need for ‘harmonisation’ of eurozone approaches.

Meanwhile, other nation like the Netherland is focused on registration over anti money laundering compliance. However, some are looking for considering wider measures after Russia’s invasion of Ukraine.

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