The European Banking Authority (EBA) issued a policy opinion on Thursday supporting a European Commission proposal that would bring virtual currency firms, such as exchange platforms and custodians, within the existing anti-money laundering (AML) regime.
The EBA’s policy opinion also makes recommendations for ensuring consistent implementation and supervision of the proposals across Europe.
Bringing virtual currency firms under the AML rules “will be an important step to mitigate risks of money laundering and terrorist financing that arise from the use of virtual currencies,” the EBA’s paper says.
The EBA also calls on the European Commission, the European Union’s (EU) parliament and council to set implementation deadlines that facilitate consistent adoption of the rules across the EU and in a way that allows regulators to exchange information more easily and efficiently.
In addition, the EBA says measures are needed to clarify the regulatory status of virtual currency firms “in order to avoid risks of misrepresentation, including whether these entities should be allowed to carry out regulated financial activities at the same time as carrying out virtual currency transactions.”