Highlights:
- Banks in the EU will now be allowed to deal in cryptocurrencies
- The Bill is said to be in action by next year
- The previous restriction with regard to cryptocurrencies will now be lifted
The EU Crypto Ban Lift
The European Union has recently launched a bill that is expected to enter into force next year and that would allow banks to offer cryptocurrency solutions to users. The new bill on the fourth Money Laundering Directive would lift the prohibition that banks had from offering crypto assets to clients and storing them on their behalf.
The bill goes further than had been previously planned, the report says. Originally, banks were not to be allowed to act as crypto custodians, and were to have relied on external custodians or dedicated subsidiaries. But now, restriction and stringent regulations have been lifted to help the transition for banks.
The amendment on the directive comes to ease rules that prohibited banks from either offering virtual asses or providing custody services. The move is an excellent relief for financial institutions in the region.
Concerns Still Loom
Although a happy news for the community, some regulators have mentioned their concerns with the new law. With the passing of the Bill, Banks will be able to buy and sell cryptocurrencies to its customers, who are not always aware of what they are getting into. With Banks acting in their own best interests, customers might be getting into something they are not really equipped for.