Brussels, 30/03/2016 (Agence Europe) - Guaranteeing the security of virtual currencies such as Bitcoin without inhibiting innovation. This is the principal message sent out by the draft report of the European Parliament on virtual currencies, drafted by Jakob von Weizsäcker (S&D, Germany).
The Social Democrat notes that virtual currencies have the potential to “dramatically” lower transaction costs for payments and transfers of funds, “quite possibly well below 1%, compared to 2% - 4% for traditional online payment systems”. More generally, these currencies may also “reduce the cost of access to finance even without a traditional bank account” and “enhance the speed and resilience of payment systems”, he adds.
Nonetheless, von Weizsäcker identifies a number of risks related to the use of virtual currencies. These can be used for money-laundering, the financing of terrorism and tax fraud due to the anonymity of their use. The MEP also flags up the “absence of flexible and reliable governance structures”, which creates uncertainty and raises questions regarding consumer protection. Furthermore, the “limited” capacity of the regulators in the area of new technology may limit the rapid introduction of appropriate safeguards.
Any regulatory approach must therefore be “proportionate”, argues von Weizsäcker, who feels that virtual currency trading platforms should be included in the anti-money laundering directive. In the framework of the European action plan to fight the financing of terrorism, the Ecofin Council has called for a targeted modification of the fourth anti-money laundering directive (2015/849) and, if necessary, of the payment services directive (2007/64), in order to counter the anonymity of these platforms (e.g. Bitcoin) and of non-bank prepaid payment cards (see EUROPE 11489). The MEP argues that a modification of the payment services directive should also make it possible to stimulate competition, for instance through improved interoperability and potentially via the promotion of an open and universal electronic wallet. (Original version in French by Mathieu Bion)