European Commission Assesses Virtual Currencies, Terrorism, and Money Laundering


Recently, the European Commission published the Supranational Risk Assessment Report (Report) in which it assessed risks factors that pose threats to EU markets and cross-border relations, such as money laundering (ML) and terrorist financing (TF). The Commission analyzed the risks of different sectors and financial products, including virtual currencies, and distinguished two variables in the study: threat and vulnerability. The Commission concluded that the actual threat of TF and ML related to virtual currencies is moderately significant, but that the possible vulnerabilities posed by virtual currencies are significant or very significant.