• Vice President of the European Central Bank says he would not ban cryptocurrency, but warns against money laundering and terrorism

  • Luis de Guindos, vice president of the European Central Bank (ECB), says he is not looking to ban cryptocurrencies, but he emphasizes the importance of establishing rules in the nascent industry to combat financial crime.

    According to myconomy, a news outlet based in Madrid, the ECB executive wants measures put in place to prevent the use of cryptocurrencies in suspicious and illicit activities.

    “I would not prohibit them, but issuers must adhere to the same rules as other financial assets and avoid anything related to money laundering or terrorist financing,” says the author.

    Cryptocurrencies, according to De Guindos, will have “no impact on financial stability.”

    The ECB vice president’s statement comes at a time when the European Commission, which serves as the EU’s executive branch, is proposing new rules aimed at closely monitoring parties involved in cryptocurrency transactions.

    Some of the proposed rules would require cryptocurrency exchanges to implement more thorough know-your-customer procedures, similar to those used by traditional financial institutions. Under the proposed measures, cryptocurrency transactions would be treated the same as bank transfers, effectively making them more traceable.

    The new rules also aim to prohibit anonymous cryptocurrency wallets, as well as establish a new anti-money laundering body within the EU to oversee the cryptocurrency industry.

    According to the European Commission,

    “The goal of this package is to improve the detection of suspicious transactions and activities, as well as to close loopholes in the financial system that criminals use to launder illicit proceeds or finance terrorist activities.”

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