VIENNA, Austria—Economic and financial affairs ministers from the 28 member nations of the European Union will soon convene an unofficial meeting to discuss the challenges posed by crypto assets as well as the possibility of enacting stern regulations, Bloomberg reported.
The matters to be discussed include the lack of transparency in the crypto transactions and the potential use of virtual currencies to conduct illicit activities such as tax evasion, money laundering, and terrorism, human and drug trafficking. The meeting will be held on Sept. 7 here.
The EU has previously warned crypto investors of the potential risks of trading in such a volatile industry. Through the European Securities and Markets Authority (ESMA), the international body cautioned traders on ICOs, citing the insufficient understanding among investors and the challenges of unregulated financial institutions. The ESMA also added that digital exchanges that are unregulated are not protected by the law since they are recognized by the relevant authorizes. Therefore, if a client of such platforms loses their investment during attacks, they are not liable for a compensation by the EU.