26 February 2017
visit dh.com

European banks told to avoid bitcoin

04 July 2014  |  9903 views  |  0 bitcoins

Europe's financial institutions should steer clear of virtual currencies such as bitcoin until a regulatory regime is in place, the European Banking Authority (EBA) has warned.

In an opinion document for the EU Council, EC and European Parliament, the EBA argues that virtual currencies could bring some important benefits, such as faster and cheaper transactions and greater financial inclusion.

However, it also identifies more than 70 risks that, taken together, "outweigh the benefits". To address these risks would require a "substantial body of regulation".

New rules would be needed to cover governance requirements for several market participants, the segregation of client accounts, capital requirements and, most importantly, the creation of 'scheme governing authorities' accountable for the integrity of a particular virtual currency scheme and its key components, including its protocol and transaction ledger.

Until this regulation is put in place, national watchdogs should "discourage credit institutions, payment institutions and e-money institutions from buying, holding, or selling virtual currencies," advises the EBA.

Read the full document here:
» Download the document now 619.8 kb (PDF File)

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Canada brings in bitcoin regulations

Canada brings in bitcoin regulations

24 June 2014  |  10959 views  |  2 comments | 19 tweets | 20 linkedin
Dutch central bank warns banks off Bitcoin

Dutch central bank warns banks off Bitcoin

04 June 2014  |  7623 views  |  1 comments | 10 tweets | 7 linkedin
Bitcoin not a threat to banking system...yet

Bitcoin not a threat to banking system...yet

20 May 2014  |  8518 views  |  0 comments | 16 tweets | 7 linkedin
NAB turns its back on Bitcoin; cites reputational risks

NAB turns its back on Bitcoin; cites reputational risks

10 April 2014  |  5734 views  |  0 comments | 7 tweets | 6 linkedin
New York regulator starts accepting bitcoin exchange applications

New York regulator starts accepting bitcoin exchange applications

12 March 2014  |  8611 views  |  0 comments | 6 tweets | 4 linkedin
Banking watchdog to set up virtual currency taskforce

Banking watchdog to set up virtual currency taskforce

05 March 2014  |  7767 views  |  2 comments | 18 tweets | 16 linkedin
UK rejects VAT on bitcoin trades

UK rejects VAT on bitcoin trades

03 March 2014  |  4892 views  |  0 comments | 7 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit BNP paribas

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
12863 views comments | 52 tweets | 72 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8602 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
7037 views comments | 7 tweets | 4 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6846 views comments | 18 tweets | 13 linkedin
hands typing furiouslyBlockchain Technology
6589 views 1 | 17 tweets | 7 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job