European Banks Aren't Interested in Crypto Investments

This is said by Chairman of European Central Bank at his Europarlament Speech
06 February 2018   542

Chairman of the European Central Bank (ECB) Mario Draghi said that the regulator is studying the potential risks that crypto currencies represent for the financial stability of the banking industry. However, according to the ECB, banks are not interested in bitcoin investments. This is reported by Reuters.

We are not observing a systematically relevant holding of digital currencies by supervised institutions. Actually, credit institutions ... are showing limited appetite for digital currencies, like Bitcoin. We should understand that Bitcoin and other digital currencies are in the unregulated space and should be regarded as very risky assets. Banks should measure the risk of any holding of digital currencies in their portfolio accordingly.
 

Mario Draghi

Chairman, European Central Bank

 Due to the lack of regulatory and legal framework and regulation in the crypto-currency industry, digital currencies are "high-risk assets". According to Draghi, banks should take this into account when including cryptocurrency in their investment portfolios.

Previously Mario Draghi questioned the maturity of the industry and its readiness for government regulation.

Nevertheless, the chairman of the ECB is convinced that financial and technological innovations should be closely watched by regulatory bodies in the context of potential risks.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.
 

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.