Bank Group Calls for Broader Oversight of EU Bitcoin Services …

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The European Banking Association (EBA) has called for more details regarding the European Union’s (EU) plan to impose tighter anti-money laundering (AML) controls on digital currency exchanges and custodial wallet services.

The group, which counts more than 100 major banking institutions as members, offered comment yesterday on a prior proposal from the executive branch of the EU to bring exchange and wallet services under the Anti-Money Laundering Directive. Proponents say the move would end the perceived anonymity of purchases and transactions conducted using the technology.

Still, critics have attacked the proposal by the European Commission as too onerous or redundant, as it would ultimately fall on services already subject to national regulation. The European Commission has been publicly exploring options since earlier this year.

In comments, the EBA largely welcomed the European Commission’s recommendations, but said that overall the proposal falls short, and that provisions focused on data collection should be strengthened.

The organization said:

“…the Commission and co-legislators should ensure that competent authorities have the appropriate tools at their disposal to ensure the effective supervision of [custodial wallet providers] (CWPs) and [virtual currency exchange providers] (VCEPs) compliance with their AML/CFT obligations.”

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Read more ... source: TheBitcoinNews