Strengthening the regulations of cryptocurrencies has been recently discussed by France saying that the EU governments should give regulators responsible for overseeing cryptocurrencies in the European markets instead of national supervisions.
The proposal was announced by France last week as a part of the wide-range package of different types of reforms aimed at strengthening financial regulations in the region. The proposal of France calls on giving European Securities and Markets Authority, ESMA, the power to regulate the cryptocurrency market.
The statement about crypto regulations was made by France’s AMF, the main financial regulator of the country, saying that the EU should seriously consider shifting towards centralized supervision of certain parts of the cryptocurrency market.
The European Commission also issued a statement recently regarding the cryptocurrency market saying that the commission wants to end the anonymity of the cryptocurrencies and establish a new anti-money laundering agency that will be responsible to enforce stricter laws regarding the cryptocurrency market.
The statement issued by the commission claims that the main aim of the proposal is to improve the detection of suspicious transactions using cryptocurrencies and to challenge money-laundering activities in the region.
According to the plan, the regulations should be extended to the cryptocurrency market. The new proposal envisages requiring every crypto service provider to verify the identity of those sending and receiving transactions. The new plan also envisages the prohibition of anonymous crypto asset wallets and payments over 10,000 euros will also be banned.
Crypto popularity in EU
Crypto is very popular in the region, especially when it comes to the tech-savvy younger generation of the region. There are many people who are actively investing in cryptocurrencies. There are many available crypto exchanges in the country for local investors, which makes trading very easy for EU-based investors.
Different countries of the region are very active in their crypto market ventures. This also includes Eastern European countries, where crypto popularity is on a very high level. For example, a recent study showed that Poland and Romania are among the top 1- countries hosting the most crypto ATMs. It was reported that Romania has as many as 78 ATMs and teller machines exchanging fiat and cryptocurrencies.
The interest in the crypto market is increasing in Romania a lot. One of the universities of the country had recently announced that it would allow its students to pay tuition fees in cryptocurrencies.
Over 11,000 students of the Lucian Blaga University of Sibiu, ULBS in Romania will become the first higher education in the country to do so. This shows just how popular cryptocurrencies are in the region.
Crypto trading in European Union
The cryptocurrency trading market is legal almost everywhere in the European Union. While no cryptocurrency has been passed as an official currency in the region, the EU has clarified that VAT/GST does not apply to the conversion of conventional currencies to bitcoin. The European Union categorizes cryptocurrencies and crypto-assets as qualified financial instruments, known as QFI.
The European financial laws do not prohibit banks, credit unions, or other companies from owning crypto assets or gaining exposure to them. The EU is one of the leaders in terms of bitcoin trading volume, following the US. The bitcoin trading volume on online exchanges in the European Union is $204.1 million. There are numerous globally well-known crypto exchanges offering services to European crypto traders.
The crypto trading market has become very easy to access in recent years. All you need to become part of the market is to open an account with one of the many crypto exchanges offering services to European traders.
In addition to many crypto exchanges available in the region, there also are many other things that are making the cryptocurrency market more popular among local traders. One very important thing is trading automation. Many of the local traders in the region are using crypto trading robots for their positions.
Why do trading robots matter?
There are numerous crypto traders in Europe, and many of them simply do not have enough time to sit in front of your screens and analyze the market. Specially developed cryptocurrency trading bots, on the other hand, are doing all of the hard work for traders.
The crypto trading bot profit made by European crypto traders is making crypto bots even more popular in the market. This, on the other hand, increases the popularity of crypto trading in general as well. Because modern crypto bots are so profitable, traders do not have to do much on their own to earn profits from the market.
As the crypto popularity in the region is increasing, officials are starting to talk about further regulations of the market. How the discussions will continue is not clear yet, but it is very likely for others to support the initiatives of the Council of Europe as well as the initiative of France.
Both initiatives largely focus on the further crackdown on money laundering activities, which is something that the European authorities are heavily focused on. Although it is very likely for the initiatives to be further discussed in the region, it is hard to say how soon the changes might be coming.