According to Bloomberg, the 28-member nations of EU will conduct an unofficial meeting where the giants of economic and financial affairs will get together to discuss the various challenges that crypto assets pose and the possible regulations that will keep them under control.
The report states that the prime minutes of the meeting will be the lack of transparency revolving around crypto transactions and how they could use different virtual currencies for numerous fraudulent activities like money laundering, tax evasion, human and drug trafficking, and even terrorism. The meeting is scheduled to be held in Vienna, Austria on the 7th of September.
Potential risks that prevail
Crypto investors were previously warned by the EU that there are several risks involved because the industry is so volatile. European Securities and Markets Authority threw caution to the winds when ICO traders were notified about the possible dangers. They have also cited the reasons why the investments could turn out to be costly. In fact, many investors did not understand the potential risks that crypto transactions had. They were well on their way to invest in ICOs without being aware of the challenges of numerous unregulated financial institutions.
The shocking story that was revealed by ESMA is that the digital transactions that took place and was unregulated are the ones that were not covered by the law. Since they were not recognized by any relevant authorizes, the digital exchanges were considered illegal. So, anyone who belonged to such platforms and lost money during these transactions at the time of attack would not be liable for any compensation by EU. It was a stern decision but a decision that opened the eyes of thousands of traders and crypto enthusiasts.
The silver lining
Although the traders are grim-faced now because of the rules and regulations that will be levied on the transactions, there is hope for a better future for crypto trading. The emergence of trading software such as Bitcoin Profit has ensured that the transactions are encrypted so that there is no third-party involvement at any point in time. This will keep the traders and their transactions safe even if there is a cyber attack. In fact, the report presented by Bloomberg suggests that ICO has become a major contributor to the raising of capital for any startup company. In fact, ICOs are now considered as the key player to integrate capital markets in the European Unions.
Before the meeting that has been scheduled, the EU declared its Fifth Anti-Money Laundering law that came into effect immediately stating financial oversight authorities will impose stricter regulations on cryptocurrencies. The new law that came into effect does not allow anonymous use of cryptocurrencies because of the same old reason that it leads to corruption, terrorism, money laundering, and various other illegal activities. With the new law, investors will now be obligated to invest at least half of their contract values in funds before they are able to initiate the transaction process.