News reached us during our stay here in London about the EBA and France’s crackdown on Crypto exchanges. This action comes after the European Banking Authority launched a very biased and negative report, read report not a law, about digital currency.
EBA says digital currency is high risk. Every financial product has a certain amount of risk that accompanies that product. One of the managers of Deutsche bank in Belgium told us months ago that “ Every financial product that gives more than an average return or interest on someone’s invested capital is always at risk and isn’t covered or “secured’ by the banks.
For example if you invest in stocks or a special fund and that fund or stock crashes , you do not get your money back. You only get your money back under special conditions. That is why we advise every customer of Deutsche Bank with every bit of information. Other banks usually don’t do that exactly if the customer does not explicitly ask about it. Of course this practice depends on the country you are in but still it come d’habitude”.
This took the French government as a carte blanche to confiscate Bitcoin and other alt coins. Some of our readers might think that France is doing the same as the US. However there is a big difference.
The US seized BTC from Silk Road because there was EVIDENCE that was partly public knowledge, or was intentionally leaked. France on the contrary just acted on a heavy biased report from the EBA, again these are not laws.
However this is not surprising since some rumors has reached us about people that day traded BTC where the banks told them that their accounts showed “ Irregularities” and possible “trading with foreknowledge” and as such their accounts have been seized.
Europe is less forward thinking than lets say USA when it comes to digital currency. The FED and other legislative organisations see the positive and the potential in digital currencies.
If its the EU goal the get a grip on BTC and altcoin why not use their legislative power and create a law or regulation for exchanges that gives the EU and central banks the power to look in to the digital exchanges and their books.
As a result of this the EU or nation, let’s say France, can levy taxes on the exchanges. That way the countries can get a steady stream of income from these taxes.
Whatever the case will be we will keep you all updated of this rather concerning development in fortress Europe.