Sat, January 28, 2023

Crypto Mining, Illegal Activities, and EU

Crypto mining and regulations

Crypto mining is a lucrative business, and companies are willing to invest millions of dollars in crypto-related projects. However, there are certain problems connected with crypto mining and the European Parliament wants to minimize the damage caused by illegal activities. Unfortunately, some people are trying to use mining to conceal their activities.

The parliament published a study related to crypto-assets. This study belongs to the Policy Department A of Directorate-General for Internal Affairs identified several legislative blind spots. Two employees of the University of Antwerp, Belgium prepared this study.

Let’s have a look at this study requested by the ECON Committee. This study revealed several challenges and the need for regulatory response and crypto mining is one of them. Cryptocurrency mining may be used as a tool to “create clean cash” by criminal groups.

Importantly, newly mined coins are clean and if someone is willing to convert them into fiat currency or other crypto-assets, the resulting funds are also clean.

Legislative blind spots and crypto industry Illegal activities and crypto industry

The European Parliament also recommended amending the definition of cryptocurrencies. The purpose of this recommendation is to tackle illicit fundraising activities.

Interestingly, this study also identified several other blind spots in current guidelines. For instance, guidelines for crypto-to-crypto exchanges as well as financial services providers that deal with token sales.

Moreover, lawmakers recommend the creation of a regional Anti-Money Laundering (AML) as well as Combating the Financing of Terrorism (CFT) regulator.

Furthermore, European AML watchdog should hire, knowledgable IT specialists to analyze the AML/CFT risks related to new technologies.

Last but not least, this study highlighted important regulatory concerns. Moreover, the authors of this study took into account recent developments and suggested regulatory responses. The members of the European Union, as well as other countries, should pay more attention to crypto-assets to prevent various illegal activities.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its