Cryptocurrency market in the EU viewfinder. What can change?

The cryptocurrency market will be regulated to a greater extent at the EU level. The bodies of the European Union prepared, among others provisions to increase supervision and control over the circulation of virtual currencies. Experts indicate that further regulations may be expected, and from the perspective of those interested in cryptocurrencies, the level of nuisance related to changes will be crucial.

Brussels prepared, among others new requirements regarding the transparency of virtual currency trading. Further interference in Cryptocurrency market they are not yet decided, and the EU authorities are constantly monitoring the situation and considering different solutions.

Greater supervision

In May this year European Union Member States have approved changes to the EU's AML Directive. As expected by project promoters, the new regulations are to increase the transparency of the cryptocurrency market and help, among others, in limiting the phenomenon of money laundering.

Kamil Hupajło - kryptoprawo.pl expert, attorney-at-law and managing partner at the Law Firm Legaltec Hupajło & Partnerzy:

"EU authorities are seeking to increase control over digital currency trading. The main assumption of the new proposals is to expand supervision and control. As a result, the trading of cryptocurrencies is to be linked to the verification of data regarding the parties to the transaction. It's about similar rules that apply to the use of banking services for a long time. For example, the rules set forth in AML will be subject to cryptocurrency replacement, and cryptocurrency platforms will be required to use the procedure to identify their clients".

Individual member states will most likely have 18 months to adapt local laws to the modified version of the AML directive.

As Kamil Hupajło adds, the Polish Ministry of Finance is also heading in a similar direction. The resort has prepared, among others amendments to the AML / CFT law, which impose additional duties on the stock exchange of cryptocurrencies. In recent months, tax authorities also demanded information on exchanges conducted in previous years from exchanges.

Cryptocurrency market - uncertain future

The European Union is also considering other changes regarding cryptocurrencies. At the end of February this year The European Commission organized the so-called round table on digital currencies. It was announced then that the market development and existing risks will be carefully monitored - in this context, possible modifications of EU law are to be considered.

Maciej Grzegorczyk, an expert of the kryptoprawo.pl website and a lawyer and proxy of the Law Firm Legaltec Hupajło & Partnerzy:

"Brussels does not rule out further legislative interventions. Importantly, EU bureaucrats are aware of the global character of this market and broad connections. Currently, Europe is responsible for a relatively small part of the traffic on the cryptocurrency market. Therefore, proposals for further legislative initiatives are to be consulted by the EC with the G20 group and other international organizations. This is an approach that can reduce the risk of hasty and ill-considered actions on the part of Brussels. However, the future of the legal environment for the cryptocurrency market remains uncertain. It is possible that, for example, this sector will be separated and separated from the traditional financial world".

According to Maciej Grzegorczyk, the manner of regulating the cryptocurrency market will have a very big impact on its future. Kryptoprawo.pl, an expert on the website, estimates that the possibility of further development of virtual currencies depends in practice on the degree of restrictiveness of legal provisions.