What we expect from EU regarding Cryptocurrency Regulation
Cryptocurrencies have been and will be a daily routine for the payment sector and the financial world, bringing up the need for the proper legal framework to exist from regulatory authorities. This framework will allow cryptos to integrate in the major financial system and drive any illegal action out of it.
The two main pillars regarding regulation in EU are the following:
1) Creating and piloting a digital currency like Euro. This application will shake up the commercial / retail department for any European bank as such a move will enable the Central Bank to receive deposits from individuals and corporates, without any banking intermediary. For this reason, we expect a new regulatory framework that will include commercial banks in the CBDC’s development.
2) AMLD5 inclusion in every company that uses cryptos. Money laundering has been marked as a major problem for crypto adoption and EU is expected to strengthen this kind of regulation regarding KYC and cryptocurrency transactions.