European Central Bank (ECB) vice president Luis de Guindos says he’s not looking to ban cryptocurrencies but highlights the importance of establishing rules in the nascent industry to curb financial crimes.
According to a report from Madrid-based news outlet myconomy, the ECB executive says he wants measures put in place to prevent the use of cryptocurrencies in suspicious and illicit activities.
“I would not prohibit them, but issuers must be required to follow the same conditions as those of other financial assets and avoid everything that has to do with money laundering or terrorist financing.”
De Guindos believes that cryptocurrencies will “have no impact on financial stability.”
The statement of the ECB vice president comes at a time when the European Commission, which serves as the executive branch of the European Union (EU), is proposing new rules aimed at closely monitoring parties involved in cryptocurrency transactions.
Some of the proposed rules would mandate cryptocurrency exchanges to implement more comprehensive know-your-customer processes similar to what traditional financial institutions follow. Cryptocurrency transactions would be treated the same way as bank transfers, effectively making them more traceable under the proposed measures.
The new rules also aim to ban anonymous cryptocurrency wallets, while establishing a new anti-money laundering body within the EU charged with providing oversight to the cryptocurrency sector.
Says the European Commission,
“The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.”
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