On 4 July 2014, the EBA published an opinion recommending that virtual currencies become subject to an EU regulatory regime. The EBA considers that a substantial legislative proposal on regulatory the virtual currencies will be required, covering areas such as segregation of client accounts, capital requirements, governance of market participants and scheme governance. As an immediate response to the risks identified by the EBA, the European authority has advised national regulators to discourage banks, investment firms, payment institutions and e-money institutions from buying, holding or selling virtual currencies.

The EBA opinion is available at: http://www.eba.europa.eu/-/eba-proposes- potential-regulatory-regime-for-virtual-currencies-but-also-advises-that-financial- institutions-should-not-buy-hold-or-sell-them-whilst-n.