The European Union plans to tighten oversight of bitcoin in Europe and pay closer attention to other cryptocurrencies in order to block potential channels for financing terrorist organizations. According to Reuters, the tragic events in France prompted EU authorities to take these steps.
In the EU, cryptocurrencies are already considered part of the modern payment system alongside traditional means of payment. Oversight is handled by national financial regulators and pan-European supervisory institutions, including the European Central Bank: they assess risks, monitor rules for market participants, and discuss mechanisms for licensing, client identification, and monitoring suspicious transactions.
What They Want to Place Under Stricter Oversight
Heads of police agencies from EU countries discussed how to strengthen oversight of non-bank payment methods. They propose placing the following under stricter oversight:
- Cryptocurrencies
- Transactions with prepaid cards
- Precious metals, including gold
- Anonymous electronic payments
Regulators are concerned that money can move through such channels faster and less transparently than through a regular bank transaction. For Europe, this is not only a matter of security but also of trust in the financial system, where currency, the euro, and digital assets increasingly intersect in a single payment environment.
Why Authorities Are Focusing on Cryptocurrencies
A recent report by the UK Treasury on financial instruments that could be used in illegal schemes noted that risks associated with cryptocurrencies are currently assessed as low. However, the agency expects the number of illegal bitcoin transactions to increase in the near future.
Bitcoin and other cryptocurrencies attract the attention of authorities precisely because these financial instruments remain difficult to control. For some users, they are a means of payment; for others, an investment. But for law enforcement, the transparency of fund movements is most important.
Context for the EU Crypto Market
Cryptocurrencies in the European Union are technically equated with traditional means of financial payment. However, EU authorities still approach the potential of such instruments cautiously and do not consider the market fully understood. This logic also underpins ongoing discussions about regulation, including MiCA, licenses for market participants, and the role of supervisory institutions such as the European Central Bank.
For major EU countries, including Germany, the issue of oversight is particularly sensitive: digital assets have already become part of the financial agenda, but rules for their use must take into account the risks of money laundering and financing of prohibited organizations. Similar issues are being addressed outside Europe as well, including in the United States of America.
Earlier, Ukrainian law enforcement conducted a search at the apartment of the founder of Bitcoin Foundation Ukraine. In Russia, as previously reported, bitcoin transactions can carry up to 4 years in prison.
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