The European Union plans to create a single supervisory body to combat money laundering, giving it broad powers to control the cryptocurrency industry.
The responsibilities of the new body, which will be launched in 2024, will include supervision of banks, financial institutions and firms working with crypto assets, Bloomberg reports. Legislator Luis Garicano, who is pushing the proposal, said it is critical to oversee the industry as cryptocurrency “is one of the areas most prone to money laundering.”
The European Commission will have to define the framework and powers for the new regulator. Now several regulators are fighting against money laundering in the EU countries, which often causes difficulties in coordinating actions. The creation of a single supervisory body is part of a plan to tighten regulation of cryptocurrencies in the eurozone. Germany, Austria, Spain, the Netherlands and other European countries called for stricter regulation of the industry.
Late last year, U.S. Securities and Exchange Commission chairman Gary Gensler said that bitcoin hinders the U.S. banking system in the fight against money laundering.
Source: Bits
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