European Crypto Brokers Renew Calls for a Regulated Market
Some of Europe’s largest crypto brokers have renewed calls for regulations amidst growing demand for a regulated crypto market, worldwide.
Although these firms are more or less going to be burdened by new regulations, transparency is very much essential in order to shake off the perception that they provide criminals a safe haven to transfer money.
Two firms, eToro, and Bitpanda were interviewed by Bloomberg earlier today, where representatives of both the firms raised concerns over money laundering giving the crypto market a bad name. They added that ‘know your customer’ regulation would help trading platforms become more mainstream. Meanwhile, increase in the number of clients would be an added advantage.
Eric Demuth, Co-CEO of Bitpanda in Vienna, said, his company would be happy to see regulations, as it’d help them understand their position. He added that moving into loosely regulated administrations like Malta and Gibraltar does not seem like a good option.
Even today, there are many loosely regulated jurisdictions that allow the purchase of cryptocurrencies without showing an identity proof, and then later, trade those cryptocurrencies to acquire luxury goods, without any fear of the law.
Business is relatively smaller in Europe as compared to Japan or the USA where supportive laws have made it possible for the markets to grow at exponential rates.
The European Commission and regional supervisors are currently examining whether applying European Union rules to crypto market would make a viable option or not.
But at the very same time, countries such as the USA and Spain, have tax agencies demanding complete trading records of crypto clients from brokers and banking institutions. This move has disappointed many customers who assumed some level of anonymity.
Meanwhile, European crypto exchanges also don’t want any harsh decision like the one made by German’s BaFin, classifying digital currencies as financial instruments, thereby burdening operators with more requirements to satisfy.