European Banking Authority publishes extensive report on crypto, recognizes it as “electronic money”
The European Banking Authority (EBA) published a 30-page report on their findings regarding the cryptocurrency industry, as well as their advice on crypto-assets.
EBA defined crypto-assets as a private asset that has been created with cryptography and depends on a type of a ledger.
According to the EBA, based on the research conducted for their report, crypto-assets are out of their realm of what the EU can financially regulate and therefore are not covered under the law. The report states crypto-assets aren’t currently recognized as “money,” however, crypto-assets can lie within the scopes of “electronic money” if they met certain requirements outlined on page 12 of the report.
Additionally, the EBA’s report covered the possibility of funding terrorism and money laundering as some of the risks associated with crypto-assets. In 2014, the EBA recommended that the Anti-Money Laundering Directive (AMLD) was to apply to virtual currency-to-fiat exchanges as well to try and prohibit the possibility of funding terrorists and terrorism, which is now known as AMLD5, and will be put into effect by Jan. 10, 2020.