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The European Central Bank (ECB) has warned that fintech companies offering cryptocurrency services and products should prepare for “stringent” banking oversight. The warning comes in the wake of the European Union’s 5AMLD anti-money-laundering directive, which is set to become binding in 2020. In a speech delivered at the Euro Finance Week in Frankfurt, ECB Executive Board Member Yves Mersch stated that providing banking services to crypto entities would incur the same level of regulation as any other financial service. Mersch further noted that the ECB is working hard to ensure that Europe remains a “vibrant hub” for innovative payments solutions. He observed that while cryptocurrency and fintech have the potential to “bring about profound changes” to financial services, companies must be mindful of the risks associated with them and understand the importance of compliance with local and international regulations. He cautioned that failing to do so could make cryptocurrencies “susceptible to being used for illicit activities with far-reaching implications for Europe and the international community.”