According to the latest report published by The European Banking Authority on the 9th of January, “Crypto-asset activities do not constitute regulated services within the scope of EU banking, payments and electronic money law, and risks exist for consumers that are not addressed at the EU level.”
In EBAs’ opinion, due to divergences emerging between Member states considering each has its own set of regulations regarding cryptocurrencies, there may be a need for pan-European regulation of crypto assets to “level the playing field.”
In its report, the EBA clearly states that “The rapid expansion in the types of crypto-assets and the purposes for which they can be applied gives rise to questions about the applicability and suitability of the current regulatory framework, particularly taking account of risks to consumers.”
The topic of cryptocurrency has been an issue of debate for regulators all across the world as they are trying to find ways to control the very systems and assets that were designed undermine the importance of banks and other financial institutions.
The EU is, however, quite reserved on the issue of when these regulations will come into play as “The relatively low level of crypto-asset activity currently observed in the EU does not appear to give rise to implications for financial stability.”
The EU, in its report advice to the European Commission, has set out a list of objectives for it to collect further information on whether there is any action, if required, at this stage at the EU level.
The EBA’s Executive Director, Adam Farkas, 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.”
This report by the EBA may be of slight concern to those involved in the crypto market but at present, there is no such danger to their digital crypto assets or tokens as the European watchdog is simply wanting to play a waiting game.