Skip to content

Europe's cryptocurrency brokers seek settlements in a transparent market

Join our community of 10,000 traders on for only $ 39 a month.

European cryptocurrency brokers face front-line regulators, saying to bring transparency.

Digital money brokers would prefer to face clear rules and greater transparency in the marketplace rather than the stigma that they have something to do with fraudulent activity in cryptocurrency.

This is a sign of maturity in the marketplace as seeing bitcoin exchanges like eToro in London and Bitpanda of Austra proactively engage with regulators for greater oversight. They believe that the policy like Knowledge-Client-Client (KYC) that is applied in the United States would legitimize the market for investors who have remained so far marginalized, including traditional and institutional investors.

Bitcoin Exchange in the United States Coinbase, for example, has 20 million members on its trading platform, but the stock market also works hand in hand with Wall Street regulators to track customer activity . In the same way, Japanese regulators are more and more involved in the market, as evidenced by its decision to issue licenses for cryptocurrency exchanges meeting certain standards. Brokers in the United States and Japan are required to provide investor data to tax agencies, which could create a conflict of interest with customers.

Meanwhile, Europe is lagging behind both regions for cryptocurrency trading, and in order to take a bigger share of the pie, eg. institutional investors, regulation is vital.

Bitpanda's CEO, Eric Demuth, told Bloomberg: "We would be happy to have regulations, so we know where we are." And eToro CEO, Iqbal Gandham, is the president. CryptoUK's self-regulated cryptocurrency group. Gandham told Bloomberg –

"The benefits of regulation are obvious: an appropriate framework would both protect consumers and ensure the longevity and legitimacy of the industry itself."

Meanwhile, Bitpanda avoids expansion into cryptocurrency and blockchain-friendly areas, such as Gibraltar and Malta, where regulation is lax and Demuth says "it does not look good" to function. Other bitcoin exchanges, including OKEx, which was previously based in China, aims to make Malta a new project in the island country.

Fight against money laundering

The Bloomberg article points to locations around the world where luxury transactions or illegal transactions fueled by bitcoin can remain largely untraceable due to access to cryptocurrency ATMs and the Internet. 39, absence of identity verification protocols. And the sooner there will be greater transparency, the sooner the cryptocurrency brokers will have a greater sense of security that their business will not be derailed because of the instinctive reaction of the regulators. For example, they want to avoid the measures taken by German regulators to identify digital currencies as "financial instruments", placing the burden on trade.

See also  BitPay Merchants Can Now Accept Bitcoin Cash Payments

Meanwhile, brokers in their quest for regulatory clarity are not alone and have the support of CryptoUK. The trade group is pushing lawmakers to release a page of Japan's bitcoin book and license exchanges that follow the KYC and Anti-Money-Laundering (AML) protocols. CryptoUK also believes that cryptocurrencies should be supervised by the Financial Conduct Authority (FCA).

Meanwhile, the European Commission and the supervisory authorities are examining whether the current regulatory framework is sufficient for cryptocurrency trading.

Image from Shutterstock to photo

Follow us on Telegram.