The European Banking Authority (EBA) has called for new pan-EU rules on crypto assets in a bid to heighten consumer protection.
The European Banking Authority (EBA), the EU’s pan-European banking regulator, published the results of its year-long investigation into crypto assets such as bitcoin and ICO tokens on Wednesday.
The report found that “a significant portion of activities involving crypto-assets do not fall within the scope of current EU financial services law (but may fall within the scope of national laws).” As a result, there is the possibility of regulatory divergence between members of the EU.
Adam Farkas, the EBA’s executive director, said in a statement:
“The EBA’s warnings to consumers and institutions on virtual currencies remain valid. The EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”
Pan-European laws may, therefore, be needed for “consumer protection, operational resilience, and market integrity,” according to the EBA.
The regulator called on the European Commission to carry out a cost-benefit analysis to see if action was needed to regulate crypto across the EU.