The laws on Bitcoin and other cryptocurrencies have always been seen as pariahs to developments in the digital asset industry. This sentiment was helped along when regulatory bodies claimed that cryptocurrencies need to be watched over because they were still in their nascent stages. A new law proposed by the European Union, however, has changed this notion after discussions resumed on the fourth EU Money Laundering Directive.
The bill passed by the Bundestag aims to provide relief and approval for investors so that they may continue to support the decentralized ecosystem. With the latest directive, banks need not have recourse for external custodians or special subsidiaries.
Starting from 2020, institutions will be able to offer their customers online banking along with features such as stocks and bonds. Many members from the political front have also come forward to comment on the latest decisions with Fabio De Masi, a financial commentator from the Left part stating:
“Banks are hot on profits from crypto businesses. However, the financial consumer protection must not be undermined. “
The concept of values in the cryptocurrency industry has been the source of the new laws with many proponents claiming that cryptocurrencies were “digital representations of a value that has not been issued by any central bank or public or public agency. The legislation further commented that only assets that are accepted as a means of exchange and payment or for investment purposes despite being digital assets would fall under the norm of the new laws.
Nothing in this world goes smooth
The decision has also been met with some opposition in people like Neils Nauhause, who has warned of banks aggressively advertising cryptos without educating holders of its disadvantages. Nauhause continued:
“Basically, banks sell a wide variety of financial products if the commission is right. If they are allowed to sell cryptocurrencies and store them for a fee, there is a risk that they will sell their customers assets with a total risk of loss without them knowing what they are getting into.”
Europe has been a hotbed for cryptocurrency developments, and fans of digital assets in the United States have always recommended proponents to conduct discussions with EU countries to create a better regulatory climate.
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