EP’s Economic and Monetary Affairs Committee (ECON) has published its report on virtual currencies (VCs) and distributed ledger technologies. It notes the market is still in a nascent state and regulators must be alive to its development and risks. It approved a resolution saying a great deal of work remains to be done to put in place effective frameworks to regulate VCs in a manner that guards against the risks while not stifling financial and technological innovation. It calls on the Commission:
- to work on guidelines on correct, clear and complete information for existing and future VC users;
- to work with the VC industry and Member States to consider applying the relevant anti-money laundering / countering the financing of terrorism requirements specified by international standards to convertible VC exchangers and any other types of institution that act as nodes where convertible VC activities intersect with the regulated fiat currency financial system; and
- to evaluate and consider extending the scope of the Anti-Money Laundering Directive to include VC exchange platforms.
(Source: ECON publishes VCs report)