European Banking Authority Seeks Universal Accounting Treatment of Crypto-Assets
By Luke Flowers – Crypto Speculator
Results were published after the European Banking Authority (EBA) concluded the assessment of the applicability and suitability of EU law to crypto-assets. Buying and selling crypto is not currently in the scope for the regulated services of EU banking. It has been suggested that it may increase the risk of money laundering with using crypto for cash activities seen to be illicit.
The EBA has recommended that the European Commission investigate the analysis further to work out the right level for an EU response. Several actions have been identified that will take place in 2019 to improve the assessment of financial institutions’ crypto-asset activities and customers potentially facing disclosure practices. The EBA report examined the application of current EU banking, payments, e-money and anti-money laundering laws to crypto-assets; custodian wallet providers and trading platforms for crypto-assets; credit institutions, investment firms, payment institutions and e-money institutions’ role in crypto-assets as well as the regulatory and supervisory issues.
The EBA advised a need for a comprehensive cost and benefit analysis for the European Commission to determine what action may be required at the EU level at this point to promote consistency on the accounting side of crypto-assets.
Adam Farkas, EBA Executive Director has said: “The EBA’s warnings to consumers and institutions on virtual currencies remain valid. The EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”
The European Commission requested further work on crypto-assets, in 2018 the EBA carried out an assessment on the applicability and suitability of EU financial services law to crypto-assets, as well as the activity by credit institutions and investment firms with buying and selling Bitcoin along with other cryptocurrencies.
There is now a wide range of crypto-assets that include those for payments, investment and access to goods or a service. With further review of the cryptocurrency space in 2019 there’s sure to be more evolution to come. Head over to our platform and delve deeper if you are looking to sell cryptocurrency.