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The European Union will regulate the global cryptocurrency market

10/22/2018
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  • EU_cryptocurrency
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At the moment, the legal regulation of cryptocurrency exchanges, tokens and other digital assets is in its infancy. At best, states apply their rules of circulation, and at worst, mining and trade are outside the legal field. The Paris Money Laundering Prevention Group (FATF) is going to solve this problem.

Paradoxes of the digital money market

Although initially the blockchain was created with the aim of avoiding regulation, now the situation has changed. It has ceased to be a local project and has taken a stable position in the modern financial system. Futures and options for cryptocurrencies are traded on the world's leading trading floors, and the capitalization of coins is measured in hundreds of billions of dollars.

And this happens without a single regulation of the norms of circulation, which leads to serious difficulties. Many investors consider this sphere criminalized. For this reason, they refuse to use these assets.

Many issues are caused by the activities of exchange sites and organizations that provide services for the exchange and sale of additional services. Few people understand how a business partner will behave in a crisis situation

Risks and solutions

The fears of market players are not unreasonable, there are really a lot of “dark spots”. The problem will be solved by a package of rules and regulations that FATF is currently developing. It is expected that a comprehensive document will be adopted in the summer of 2019. There will be reviewed:

  • basic rules for ICO;
  • the order in which crypto coins and tokens are traded will be determined;
  • activity standards for trading platforms will be introduced.

The main problem now is that some states have already adopted their rules for regulating the turnover of digital assets. But here, FATF has its leverage.

The organization’s president, Marshall Billingsley, stated that if a country does not follow the rules of the Paris Group, it will be blacklisted. This will limit access to the global capital turnover system, which will cause serious problems in operating activities.

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