The authority also makes several recommendations aimed at supporting the consistent pan-EU implementation and supervision of the proposals that the Commission had published on 5 July 2016.
The EBA said that bringing virtual currency exchange platforms and custodian wallet providers under the 4th Anti-Money Laundering Directive, as proposed by the European Commission, will be an important step to mitigate risks of money laundering and terrorist financing that arise from the use of virtual currencies.
However, the EBA added that clarifications to these amendments are required and that competent authorities across the EU should be equipped with the appropriate tools to be able to effectively supervise the proposed requirements.
Furthermore, national sanction powers as proposed in the ECs amendments should be retained, while transactions in virtual currencies should remain outside of the scope of the Payment Services Directive.
Finally, the EBA believes that measures that clarify the regulatory status of virtual exchange platforms and custodian wallet providers should be implemented 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.
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