In the effort to design strong measures against the rising fraud and money laundering vices through digital currencies, Bulgaria’s Financial Supervision Commission (FSC) is considering to monitor thoroughly the cryptocurrency market in the country.
The FSC will soon analyse and monitor the Initial Coin Offerings (ICOs) and crypto market launched in Bulgaria in order to arrive at proper measures against fraud and money laundering via cryptocurrencies, FSC revealed.
Four Main Areas to Tackle
published about “Financial Tech Monitoring Strategy in the Non-Banking Financial Sector for 2018/2020,” whereby it will majorly concentrate on four key areas of action, which includes: cyber-security risk management; analysis of the need for a regulatory framework in relation to outsourcing services; creation of innovation hubs; and setting requirements for possible licensing or registration of companies offering financially innovative products.
“The challenge for the non-banking financial sector is to balance the benefits of the introduction of cutting-edge technology and preserve financial stability and safety for consumers and investors in the sector,” the FSC strategy reads.
Regulation of Crypto Industry Still Lagging Behind
According to data from the European Securities and Markets Authority (ESMA), investments in the fintech sector from January to September of 2016 reached US$19 billion globally.
The Regulators in Bulgaria have weak rules and preventative measures related to cryptocurrency crime. However, Bulgaria as a country is ranked in the second position among the richest bitcoin owner in the globe. Recently, the police operations in the country seized properties of suspected criminals.
In May last year, there was a crackdown on crypto crime by the law enforcement authority that led to seizure of 213,519 bitcoins. This bitcoin that was seized is able to finance a quarter of Bulgarian national debt. The criminals applied their adroitness to bypass taxes. Last month, the virtual coins were worth over $1.2 billion.