European Banking Authority: Say ‘No’ to Bitcoin–for Now (July 7, 2014)
The European Banking Authority is urging EU financial institutions to avoid buying, holding or selling digital currencies, like Bitcoin, until regulations for the decentralized currencies are in place. The EBA, an independent EU authority, which ensures effective regulation and supervision across the European banking sector, concluded in a report issued last week that Bitcoin risks outweigh the benefits. The EBA identified more than 70 risks, including risks for users and market participants; risks related to financial integrity, such as money laundering and other financial crimes; and risks for existing payments in conventional currencies. In the U.S., the GAO recently concluded that multiple federal agencies must address risks related to digital currencies and that consumer protections are necessary.
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