EU Proposes New Regulatory Framework for Blockchain and Cryptocurrencies
European Union published a new study regarding legal gaps that may arise from blockchain and cryptocurrencies’ use from the wider audience.
The main pillars of the study are :
- Funding through token distribution
- Money laundering risk from crypto mining
The most highlighted part of the study is the connection between crypto mining and money laundering risk. The mining process is the creation of “new money”. Creating “new money” could work as an opportunity for investing “dirty money” in a new type of investment/cryptocurrencies to “clear” them.
In parallel, the EU’s Anti-Money Laundering Committee focused on crypto-to-crypto exchanges and financial institutions, which use tokens as funding tools. Regarding stablecoins, promoted from many Central Banks, the EU refer that there is a risk for rapid adoption for use without the proper infrastructure for benefiting the state.
You can read more about the study, by clicking here.