Senior bank and fintech sources say
European regulators need to do more to get up to speed with
cryptocurrencies and work towards regulatory alignment between
According to Javier Sebastian, in the
digital regulation and trends team at BBVA, "the crypto
universe is almost, by definition, borderless". In this sense,
the job of regulating cryptocurrencies extends far beyond the
geographical borders of Europe. "This enhances the need for
harmonisation in regulation among jurisdictions to avoid
regulatory arbitrage," he added.
The need for member states to adopt
similar, or at least complementary, legislation is even more
beneficial in respect to the digital single market.
Yet despite its potential benefits,
legislation has not gained traction yet within Brussels. This
causes regulatory headaches, such as whether present guidelines
allow for secure trading in cryptocurrency for customers.
"Absolutely not" at the moment, according to Sebastian.
As Sebastian indicates, this isn’t to say