Since the G20 meeting, the legislating entities have focused on discussing what to do with cryptocurrencies, accepting that they have a potential beneficial to society, but can be used for illicit acts that harm people.

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In the case of Europe, it is the Directorate for the Prevention of the Use of the Financial System for Money Laundering or the Financing of Terrorism that took over the baton. They have met several times to determine what are the possible options to reduce or eliminate the risk potential associated with cryptocurrencies.

Registration of Exchange Sites and Virtual Purses

It was established that the optimal solution currently is to require a registry of these entities in order to reduce the risk, the way it will be carried out will depend on each state within the territory, being the fundamental basis that must be officially registered if they wish to back the currencies Fiduciaries circulating in each territory.

The objective of this measure is to monitor the operations carried out by the operations, being affected by the anonymity of the users. This means that, although a registration is required by the platforms, users are not obliged to say their identity or be compromised.

To deal with this they place a second prevention, the platforms must perform an analysis of the transactions and help determine if they are risky for society or doubtful origin.

It can be seen that the measure at first impression is not intended to eradicate or regulate cryptocurrencies, they have an objective to guarantee the integrity of European society, avoiding money laundering or financing to insurgent groups. It will depend on each state how the registration will apply, related to the point of information requested from the platforms.

Incomplete solution

The same board states that this measure does not solve all the problems, because those who use the platforms for illicit actions can find the gaps of each entity, but it is a first step to improve the understanding of this volatile market, allowing to improve future laws that establish each state.

Current situation

The project is pending approval, with the Council of Ministers of the Twenty-eight of the European Parliament approving its issuance, considering that these can make changes relevant to the project.

Future projections

Depending on how this project is applied, it is considered that these measures can have a positive impact for the virtual market, because the support of the States fosters people's trust. The problem is that if it is applied in a manner that exceeds its vigilance, it causes the opposite, a drop in confidence because it will behave like a normal commercial bank.