The European Banking Federation (EBF), which represents Europe’s largest banking groups, unveiled its vision for digital currencies and cryptocurrency regulation. The group called upon governments and businesses to develop a framework for bitcoin regulation, pointing out that further research and ongoing evaluations of rules should be made.
In particular, the group proposed that a comprehensive framework for cryptocurrency regulation based on existing anti-money laundering laws could be applied. It also acknowledged that the blockchain, which refers to bitcoin’s distributed public ledger, provides a number of interesting opportunities for financial institutions and the collective ecosystem.
Cryptocurrency Regulation Proposals
The EBF went on to propose that public and private assessment of blockchain technologies should be conducted. It also noted that there is a need to raise awareness on digital currency developments, along with the benefits of using such products and services.
However, the EBF clarified that they believe bitcoin’s future as a cryptocurrency remains unclear. It expressed hesitation about using bitcoin as a case currency, citing that it was built as an experiment.
Despite that, the group highlighted the potential of using crypto-technologies and ensuring that cryptocurrency regulation still allows room for innovation. “Using such technology offers clear opportunities to reduce costs of moving and handling money, to secure consumer spending and to introduce greater liquidity to the market. It also improves offers of products and services and increases banks’ velocity in all their activities,” the EBF noted.
Furthermore, the group mentioned that inconsistencies in cryptocurrency regulation must be removed. Because of the decentralized nature of the industry and its transactions, governments have adopted varying degrees of oversight on cryptocurrency activity these days. In Europe alone, some nations have adopted an open-minded stance for bitcoin while others have been skeptical of recent developments. Even in the U.S., some states such as New York have rolled out a strict regulatory framework while other states have lagged far behind in terms of legislation.