Libra: in Europe there is no ad hoc regulation

Libra: in Europe there is no ad hoc regulation

The vertices ofEBA (European Banking Authority) wanted to draw the attention of EU legislators to the fact that currently there is no legislation capable of regulating cryptocurrencies such as Libra, the virtual currency based on the Calibra wallet that Facebook and some partner companies intend to launch within the next year.

The president of the Authority, Jose Manuel Campa, intervened in this regard and, speaking in front of the members of the European Parliament's Economic Affairs Committee, expressed strong concerns about the fact that Libra could be used massively in the activities of money laundering.

The current regulatory vacuum would be determined by the fact that the laws concerning financial activities and those concerning electronic payments would be separate. Operating in both sectors, tools that lend themselves to both speculation and monetary transactions such as cryptocurrencies could escape any attempt at regulation.

For the moment a solution could be to create aindependent agency to deal with the problem, but for now all the proposals on the matter would have remained on paper without any concrete effect. The excessive discretion of individual member states could manifest all its most critical aspects precisely with the arrival of Libra.

The topic of money laundering is becoming increasingly pressing for European institutions, particularly after the discovery of illegal activities operated through some financial institutions. It is estimated that only in the period between 2005 and 2015 a single Estonian branch of the main Danish bank registered the transit of 200 billion euros of unverified provenance.

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