EBA: Financial Institutions Should Avoid Bitcoin, Await Regulation
This article has been updated to include responses to the EBA by the Bitcoin Foundation and the UK Digital Currency Association. The European Banking Authority (EBA) has published an 'opinion' warning financial institutions to stay away from digital currencies until the industry is regulated. In the document, which was addressed to the EU council, European Commission and European Parliament, the EBA set out new requirements for the regulation of digital currencies and also instructed financial institutions not to buy, hold or sell digital currencies until new rules are in place. The EU....
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Major research/database company NexisLexis is planning to hold a Bitcoin Regulation webinar come the 8th of July, according to a tweet published Friday afternoon. Specifically, the webinar aims to instruct professionals on compliance and risk issues for financial institutions - many of whom are becoming increasingly interested developments in this sector. New @Sheshunoff post: Bitcoin Regulation - Addressing Compliance & Risk Issues for Financial Institutions http://t.co/1Fz9eGxAcN @circlebits. - LexisNexis (@LexisNexis) June 13, 2014. According to the announcement, the agenda for the....
The changing geopolitical and economic environment, as well as persisting differences between responsible government institutions, are hindering the advance of legislation tailored to regulate cryptocurrency mining in Russia. According to a report quoting industry watchers, these factors are halting the advance of the necessary legislation.
Two Draft Laws on Mining Await Approval by the Russian Government
Despite the latest market downturn, the mining of cryptocurrencies continues to expand in Russia, the crypto page of the Russian business news portal RBC noted in an article.....
The chairman of the Federal Reserve, Jerome Powell, says crypto requires new regulation, citing that it presents risks to the U.S. financial system and could destabilize existing financial institutions.
Fed Chair Powell Sees the Need for New Crypto Regulation
Federal Reserve Chairman Jerome Powell talked about the need to establish new regulation for cryptocurrency Wednesday during a panel discussion on digital currencies organized by the Bank for International Settlements (BIS).
Noting that new forms of digital money, including cryptocurrencies and stablecoins,....
According to the latest guidance note issued by the South African banking sector regulator, Prudential Authority, risk assessment does not mean financial institutions should avoid or eliminate risks via the wholesale termination of client relationships with entities such as crypto asset service providers. Instead, the regulator wants financial institutions to only consider “de-risking” when the “risk posed is too great to manage successfully.”
A Threat to Financial Integrity
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Last week, the London-based European Banking Authority released a 46-page “Opinion on Virtual Currencies”, covering both centralised and decentralised digital currency systems as reported by CoinTelegraph. The EBA is entrusted with ensuring effective and consistent regulation of financial institutions across the EU and this document provides a thorough evaluation of the risks presented by digital currencies, as well as initial thoughts on how they might be regulated. Many of the headlines have focused on the EBA’s “ban” on regulated financial institutions holding, buying or selling digital....