2016/2007(INI) | [ParlTrack]

Nicola DANTI, Pina PICIERNO, Marc TARABELLA

Draft opinion
Paragraph 1

1. Points out that the virtual currency (VC) industry and VC technology are in a nascent state and therefore a common European approach is needed now, which may require a legislative proposal;

Amendment 10 #

Draft opinion
Paragraph 3

3. ~~Acknowledg~~Stresses that VCs could present risks in relation to criminal activities, such as financing terrorism, money laundering ~~and~~, tax fraud~~; notes, however that there is little evidence that VCs have been widely used as a payment vehicle for criminal activity~~ and tax evasion, as well as other potential challenges which might be caused by the pseudo-anonymity of VCs; indeed, asks the Commission to evaluate and consider the necessity of extending the scope of the current legislation, such as the AMLD, thus including VC exchange platforms and "wallet providers", with the purpose of preventing and tackling the above-mentioned risks;

Amendment 11 #

Draft opinion
Paragraph 3

3. ~~Acknowledg~~Stresses that VCs could present risks in relation to criminal activities such as money laundering ~~and tax fraud; notes, however that there is little evidence that VCs have been widely used as a payment vehicle for criminal activity~~, terrorist financing, tax evasion and tax fraud; Stresses that risks to financial stability could become more pronounced as VCs become more widespread; Notes that VCs may become the target of increased cybercrime as they become more widespread;

Amendment 12 #

Draft opinion
Paragraph 3

3. Acknowledges that VCs could present many risks and threats to financial integrity, consumer protection, cyber- security, exchange control enforcement, effective financial regulation and also in relation to criminal activities such as money laundering, tax evasion and tax fraud; notes, however that there is little evidence that VCs have been widely used as a payment vehicle for criminal activity;

Amendment 13 #

Draft opinion
Paragraph 3

3. Acknowledges that VCs could present risks in relation to criminal activities such as money laundering and tax fraud; notes~~, however~~ that there is ~~litt~~considerable evidence that VCs ~~hav~~are beening widely used as a payment vehicle for criminal and illegal activity;

Amendment 14 #

Theodoros ZAGORAKIS

Draft opinion
Paragraph 3

3. Acknowledges that VCs could present risks in relation to criminal activities such as money laundering, the funding of illegal activities and tax fraud; notes, however, that there is little evidence that VCs have been widely used as a payment vehicle for criminal activity; notes, however, the huge fluctuations observed in the past in the exchange rates of some VCs and the potential risks arising from the use of VCs for consumers;

Amendment 15 #

Draft opinion
Paragraph 3

3. ~~Acknowledg~~Notes that VCs could present risks in relation to criminal activities such as money laundering and tax fraud; notes, however that traceability of cash transactions tends to be much lower than VCs, highlights that there is little evidence that VCs have been widely used as a payment vehicle for criminal activity;

Amendment 16 #

Nicola DANTI, Liisa JAAKONSAARI, Marc TARABELLA

Draft opinion
Paragraph 3 a (new)

3a. Stresses that because of the opaque nature of the industry, the lack of regulatory safeguards and the complexity of the technology, VC holders are vulnerable to scams, such as stealing VCs (through hacking, fraud, false pretences, or misrepresentations) to fraudulent investment schemes;

Amendment 17 #

Maria GRAPINI

Draft opinion
Paragraph 3 a (new)

3a. It recognizes that the use of virtual currency, which is not a national or foreign currency and which is not legally mandatory, poses potential risks to the financial system both in terms of regulation and in terms of market surveillance and security.

Amendment 18 #

Draft opinion
Paragraph 4

~~4. Recognises that persons seeking wealth preservation may use independent currencies such as Bitcoin at times of depressed interest rates or as a safe harbour during times of economic instability;~~deleted

Amendment 19 #

Draft opinion
Paragraph 4

Amendment 2 #

Draft opinion
Paragraph 1 a (new)

1a. Points out that the VC industry and the VC technology are innovative technologies and are being developed not on the basis of existing infrastructures;

Amendment 20 #

Draft opinion
Paragraph 4

4. ~~Recognises that persons seeking wealth pres~~Is extremely concerned that VCs may become a powerful altervnati~~on may use independent currencies such as Bitcoin at times of depressed interest rates or as a safe harbour during times of economic instability~~ve to national banking systems for people seeking to preserve their wealth;

Amendment 21 #

Draft opinion
Paragraph 4 a (new)

4a. Stresses, however, that no specific regulatory protections exist in the EU that protect consumers from financial losses if a platform that exchanges or holds virtual currencies fails or goes out of business, and this fact should be communicated by the businesses in the VC sector;

Amendment 22 #

Nicola DANTI, Pina PICIERNO, Marc TARABELLA, Catherine STIHLER

Draft opinion
Paragraph 4 a (new)

4a. Recognises the potential of VC technologies well beyond the financial sector;

Amendment 23 #

Draft opinion
Paragraph 5

5. ~~Points out that it is difficult to~~Recognizes the difficulties and uncertainties in predicting how VCs might develop ~~and to~~; calls on the Commission for a coherent and comprehensive strategy at the EU level, with the aim of identifying any potential specific longer-term policy responses ~~while not stifling innovation~~, to avoid the fragmentation and distortion of the Single Market, and to prevent the risks of the VCs, while not stifling innovation; suggests the creation of a horizontal Task Force DLT (TF DLT), under the leadership of the Commission, supporting the relevant public and private actors while evaluating and analysing all the potential evolution of DLT application and VCs, with the final scope of ensuring a timely and well- informed response at the EU level;

Amendment 24 #

Liisa JAAKONSAARI, Nicola DANTI

Draft opinion
Paragraph 5

5. Points out that it is difficult to ~~predict how VCs might develop and to identify any potential~~monitor and gather statistical data on VCs and to predict how VCs might develop; Calls on the Commission to address this lack of information and to propose specific longer-term policy responses, whi~~le not stifling innovation~~ch address the challenge of consumer protection but leave room for innovation; Calls on the Commission to pay special attention to the algorithms used and to assess their security;

Amendment 25 #

Theodoros ZAGORAKIS

Draft opinion
Paragraph 5

5. Points out that it is difficult to predict how VCs might develop and to identify any potential specific longer-term policy responses while not stifling innovation;· stresses, however, that the Commission should be ready to intervene at institutional level, if necessary, in coordination with the European Central Bank and the European Banking Authority;

Amendment 26 #

Draft opinion
Paragraph 5

5. Points out that it is difficult to predict how VCs might develop and to identify any potential specific longer-term policy responses while not stifling innovation; recommends the Commission to review the EU legislation on payments in the light of the new possibilities afforded by new technological developments including VCs;

Amendment 27 #

Draft opinion
Paragraph 5 a (new)

5a. Asks the Commission to establish a horizontal Task Force DLT (TF DLT) in order to provide the necessary technical and regulatory expertise to support a European response to the new opportunities and challenges of VCs and DLTs;

Amendment 28 #

Ildikó GÁLL-PELCZ

Draft opinion
Paragraph 5 a (new)

5a. Highlights that an important process will need to involve ongoing monitoring and analysis of the manner in which VCs are evolving and the policy challenges that they pose;

Amendment 29 #

Ulrike TREBESIUS

Draft opinion
Paragraph 5 a (new)

5a. Notes that virtual currency companies can be organized and operated from anywhere in the world, over the internet; maintains that in this area of technology there is a danger of losing important innovation to other parts of the world; asks the Commission and member states to work with VC companies to avoid overregulation in order to keep the EU attractive as a location for R&D and the operation of these technologies;

Amendment 3 #

Draft opinion
Paragraph 2

2. Recognises the potential benefits associated with VCs for consumers, businesses~~, charities~~ and the economy at large, which include greater speed and efficiency and reduced costs in making payments and transfers, in particular across borders, and potentially promoting financial inclusion;

Amendment 30 #

Nicola DANTI, Liisa JAAKONSAARI, Marc TARABELLA

Draft opinion
Paragraph 6

6. Calls on the Commission to consider the contribution of VCs to all sectors, including their role in the development of the digital single market, with a view to ensuring that legitimate businesses in the VC sector are allowed to thrive;deleted

Amendment 31 #

Draft opinion
Paragraph 6

6. Calls on the Commission to consider the contribution of VCs and DLTs to all sectors, including their role in the development of the digital single market, with a view to ensuring that legitimate businesses in the VC sector are allowed to thrive;

Amendment 32 #

Draft opinion
Paragraph 6 a (new)

6a. Calls for the Commission to promote a higher involvement of independent researchers (universities, think tanks) together with private sector to innovate in VCs and VC technology area and allocate sufficient financing through the existing programmes such as Horizon2020;

Amendment 33 #

Draft opinion
Paragraph 6 a (new)

6a. Acknowledges that the development of effective regulatory responses to the development of VCs is still at an early and delicate stage; stresses that regulators in some areas have made considerable progress in developing effective responses; notes, however, that a great deal of work remains to be done to put in place effective frameworks to regulate VCs in a manner that guards against the risks while not stifling financial and technological innovation;

Amendment 34 #

Jan Philipp ALBRECHT

Draft opinion
Paragraph 6 a (new)

6a. Highlights the need for consumer protection when using VCs, notably in terms of cybersecurity of assets, contact persons and contact details in case of queries or problems, and clear and easily understood terms and conditions including clear statement of the risks and fact that VCs and their value are not guaranteed by any bank or country;

Amendment 35 #

Ildikó GÁLL-PELCZ

Draft opinion
Paragraph 6 b (new)

6b. Finds it important that adoption of consistent terms and a common conceptual understanding of virtual currency by all relevant national entities is essential in order to avoid duplicating efforts and working at unintended cross purposes, and facilitates the capacity of national authorities to leverage their various perspectives and areas of expertise in order to most effectively identify and address relating to virtual currencies;

Amendment 36 #

Draft opinion
Paragraph 7

7. Stresses the importance of consumer awareness and trust when using VCs while noting the growing use of VC micropayments for online purchases of goods; calls on the VC industry, in cooperation with the Commission and the Member States, to ~~develop voluntary standards~~consider applying the relevant AML/CFT requirements specified by the international standards to convertible VC exchangers, and any other types of institution that act as nodes where convertible VC activities intersect with the regulated fiat currency financial system and to address the opportunities and challenges of VCs for consumers with the aim of enhancing the transparency of VC schemes in terms of how they are organised and operated and how they distinguish themselves from regulated and supervised payment systems, in terms of consumer protection, in order to allow existing and future VC users to make an informed choice.

Amendment 37 #

Nicola DANTI, Liisa JAAKONSAARI, Marlene MIZZI, Pina PICIERNO, Olga SEHNALOVÁ, Marc TARABELLA, Catherine STIHLER

Draft opinion
Paragraph 7

7. Stresses the importance of consumer awareness ~~when using VCs while noting the growing use of VC micropayments fo~~and transparency when using VCs; calls on the Commission, after conline purchases of goods; calls on the VC industry, in cooperation with the Commission and the Member States, to develop voluntary standards and to address the opportunities and challenges of VCs for consumers with the aim ofsulting the Member States and the VC industry, to develop specific EU guidelines with the aim of guaranteeing that a correct, clear and complete information is provided for existing and future VC users, to allow them to make a fully informed choice, thus enhancing the transparency of VC schemes for consumers in terms of how they are organised and operated and how they distinguish themselves from regulated and supervised payment systems,; in ~~terms of consumer protection, in order to allow existing and future VC users to make~~particular, underlines that the consumers and users, before using VCs, shall be informed about the high volatility and in~~formed choic~~stability of their value.

Amendment 38 #

Draft opinion
Paragraph 7

7. Stresses the importance of consumer awareness when using VCs while noting the growing use of VC micropayments for online purchases of goods; calls on ~~the VC industry, in cooperation with the Commission~~Member States, in cooperation with the Commission, to engage in promoting and educating citizens about VC technology so that VC technologies could be implemented to improve or replace existing payment or financial market infrastructures to achieve higher market efficiency; calls on the VC industry and the Member States, to develop voluntary standards and to address the opportunities and challenges of VCs for consumers with the aim of enhancing the transparency of VC schemes in terms of how they are organised and operated and how they distinguish themselves from regulated and supervised payment systems, in terms of consumer protection, in order to allow existing and future VC users to make an informed choice.

Amendment 39 #

Jan Philipp ALBRECHT

Draft opinion
Paragraph 7 a (new)

7a. Stresses the importance of pseudonymisation and personal data protection when using VCs as well as the importance of transparency regarding transactions and the block chain

Amendment 4 #

Draft opinion
Paragraph 2

2. Recognises the potential benefits associated with VCs for consumers, businesses, charities and the economy at large, which include ~~greater~~enhanced speed and efficiency and ~~reduced~~low costs in making payments and transfers, in particular across borders, and potentially promoting financial inclusion;

Amendment 40 #

Nicola DANTI, Marlene MIZZI, Pina PICIERNO

Draft opinion
Paragraph 7 a (new)

7a. Is concerned for fundamental economic freedoms that the development of virtual currencies may be a pretext for gradually substituting the holding of cash and its use as means of payment; calls on the Commission firmly to reject this prospect;

Amendment 41 #

Nicola DANTI, Liisa JAAKONSAARI, Pina PICIERNO, Olga SEHNALOVÁ, Marc TARABELLA, Catherine STIHLER

Draft opinion
Paragraph 7 a (new)

7a. Asks the Commission to ensure that an adequate level of safeguards and effective remedies are in place for consumers who might face some of the risks linked to the use of VCs, such as hacking, malfunctioning of the software/hardware, scams and fraudulent schemes; calls the Commission to consider the possibility to set up specific, concrete and effective measures at the EU level in order to ensure the users are fully protected and safeguarded in relation to these risks.

Amendment 5 #

Draft opinion
Paragraph 2

2. Recognises the potential benefits associated with VCs for consumers, businesses, charities and the economy at large, which include greater speed and efficiency and reduced costs in making payments and transfers, in particular across borders, ~~and~~ potentially promoting financial inclusion and facilitating the access to funding and financial resources for the business sector and the SMEs;

Amendment 6 #

Nicola DANTI, Marlene MIZZI, Marc TARABELLA

Draft opinion
Paragraph 2 a (new)

2a. Highlights that VCs are the only means of payment other than cash, which can facilitate real-time settlement (receiver gets 100% of funds at the time of payment);

Amendment 7 #

Draft opinion
Paragraph 2 a (new)

2a. Notes also that the use of VCs and DLTs has positively contributed and facilitated micropayments for online purchases of goods;

Amendment 8 #

Draft opinion
Paragraph 2 b (new)

2b. Highlights that VCs are pseudo- anonymous which allows customers to maintain their identity private, but makes transactions perfectly traceable and investigations easier for legal authorities, and thus making it superior to cash or existing payment infrastructures;

Amendment 9 #

Nicola DANTI, Liisa JAAKONSAARI, Marlene MIZZI, Pina PICIERNO, Marc TARABELLA

Draft opinion
Paragraph 2 b (new)

2b. Stresses the importance of developing an European level playing field to allow unleashing and fully developing the valuable potential of Distributed Ledger Technologies (DLT), that can be used in numerous innovative fields and in a wide range of industries and services, such as "smart contracts", crypto-equity crowdfunding and dispute mediation services, in particular in the financial and juridical sectors; moreover, encourages public bodies to evaluate the benefits and explore the possibility of applying such innovative technologies to other fields, with the scope of providing better, more rapid and more efficient services to the EU citizens;

source: 578.805

2016/03/30 ECON 128 amendments...

Amendment 1 #

Motion for a resolution
Citation 7 a (new)

– having regard to the Financial Action Task Force’s (FATF) Guidance for a Risk-Based Approach to Virtual Currencies as of June 2015,

Amendment 10 #

Motion for a resolution
Recital B

B. whereas DLT ~~describes shared decentralised~~includes databases with varying levels of trust and resilience, with the potential to process large numbers of transactions rapidly, and with transformational capacity not only in the area of VCs but also in fintech more broadly speaking, where clearing and settlement might be one obvious application, and, beyond finance, especially with regard to proof of identity and property;

Amendment 100 #

Motion for a resolution
Paragraph 12 – subparagraph 1 a (new)

Underlines however that that many virtual currency actors are not subject to minimum capital requirements, let alone strict prudential requirements, making an insolvency more likely and potentially more damaging for these firms’ clients;

Amendment 101 #

Motion for a resolution
Paragraph 12 a (new)

12a. Calls on the Commission to review of the VAT Directive, and proceed to the necessary amendments so as to include the exemptions of VAT in transactions made in virtual currencies;

Amendment 102 #

Motion for a resolution
Paragraph 12 a (new)

12a. Urges particular caution when defining virtual currencies, in the context of any future legislative proposals, to take proper account of the existence of ‘local currencies’ of a not for profit nature, often having limited fungibility and performing significant social and environmental benefits and avoid disproportionate regulation in this area;

Amendment 103 #

Motion for a resolution
Paragraph 13

13. Calls for the creation of a horizontal Task Force DLT (TF DLT) under the leadership of the Commission, in order to provide the necessary technical and regulatory expertise to support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well-informed response to the new opportunities and challenges arising with the introduction of DLT applications; observes that the potential of DLT use and the present investment dynamics justify TF DLT being equipped with a proper budget and being staffed with regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications, identifying standards for best practice, and, where appropriate, recommending regulatory measures and addressing potentially arising consumer protection issues and systemic challenges;deleted

Amendment 104 #

Burkhard BALZ

Motion for a resolution
Paragraph 13

Amendment 105 #

Motion for a resolution
Paragraph 13

13. ~~Calls for the creation of a horizontal Task Force DLT (TF DLT) under the leadership of~~Asks the Commission~~, in order~~ to provide the necessary technical and regulatory expertise to support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well- informed response to the new opportunities and challenges arising with the introduction of DLT applications; observes that the potential of DLT use and the present investment dynamics ~~justify TF DLT being equipped with a proper budget and being staffed~~needs a close cooperation with regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications and market developments, identifying standards for best practice, and, where appropriate, recommending regulatory measures and addressing potentially arising consumer protection issues and systemic challenges;

Amendment 106 #

Motion for a resolution
Paragraph 13

13. Calls for the creation of a hHorizontal Task Force DLT (TF DLT) under the leadership of the Commission, in order to provide the necessary technical and regulatory expertise to support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well-informed response to the new opportunities and challenges arising with the introduction of DLT applications; observes that the potential of DLT use and the present investment dynamics justify TF DLT being equipped with a proper budget and being staffed with regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications, identifying standards for best practice, and, where appropriate, recommending regulatory measures and addressing potentially arising consumer protection issues and systemic challenges;, led by the Commission and staffed with regulators and technical experts from business and academia; This TF DLT should have the following mandate:

Amendment 107 #

Motion for a resolution
Paragraph 13 – point i (new)

(i) to support relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well- informed response to the new opportunities and challenges arising with the introduction of DLT applications;

Amendment 108 #

Motion for a resolution
Paragraph 13 – point ii (new)

(ii) to closely monitor the development and usage of DLT systems in the EU and to follow developments worldwide;

Amendment 109 #

Motion for a resolution
Paragraph 13 – point iii (new)

(iii) to assess current European regulation which may need to be updated to reflect the development of DLT;

Amendment 11 #

Motion for a resolution
Recital C a (new)

Ca. whereas virtual money is not a means of exchange and cannot replace national currencies,

Amendment 110 #

Motion for a resolution
Paragraph 13 – point iv (new)

(iv) to propose a roadmap for future steps to be taken on a European level, and recommendations for action on a national level;

Amendment 111 #

Motion for a resolution
Paragraph 13 – point v (new)

(v) to fully analyse the benefits and risks of the use of DLT to tackle money laundering, terrorism financing and fraud;

Amendment 112 #

Motion for a resolution
Paragraph 13 – point vi (new)

(vi) to consider how DLT may affect consumer and data protection;

Amendment 113 #

Motion for a resolution
Paragraph 13

13. Calls for the creation of a horizontal Task Force DLT (TF DLT) under the leadership of the Commission, in order to bring together stakeholders and provide the necessary technical and regulatory expertise to monitor VC usage, foster an awareness and support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well- informed response to the new opportunities and challenges arising with the introduction of DLT applications in cases where there is widespread use; notes, furthermore, the importance of monitoring VC usage and policy responses in third countries with regard to VC; observes that the potential of DLT use and the present investment dynamics justify TF DLT being equipped with a pprop~~er budget and being staffed with~~riate resources, regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications, identifying standards for best practice, and, ~~where appropriat~~only in cases where there is widespread market presence, recommending regulatory measures and addressing potentially arising consumer protection issues and systemic challenges;

Amendment 114 #

Motion for a resolution
Paragraph 13

13. Calls for the creation of a horizontal Task Force DLT (TF DLT) under the leadership of the Commission, and with the participation of the European Central Bank in order to provide the necessary technical and regulatory expertise to support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well-informed response to the new opportunities and challenges arising with the introduction of DLT applications; observes that the potential of DLT use and the present investment dynamics justify TF DLT being equipped with a proper budget and being staffed with regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications, identifying standards for best practice, and, where appropriate, recommending regulatory measures and addressing potentially arising ~~consumer protection issue~~issues with the protection of investors and savers and systemic challenges;

Amendment 115 #

Motion for a resolution
Paragraph 13

13. Calls for the creation of a horizontal Task Force DLT (TF DLT) under the leadership of the Commission, in order to provide the necessary technical and regulatory expertise to support the relevant public actors, at both EU and Member State level, in their efforts to ensure a timely and well-informed response to the new opportunities and challenges arising with the introduction of DLT applications; recommends that the task force accompany any assessment of opportunities and challenges with the associated benefits and risks to end users of the financial system to help the Commission and legislators prioritise any legislative initiatives accordingly; observes that the potential of DLT use and the present investment dynamics justify TF DLT being equipped with a proper budget and being staffed with regulators and external technical experts dedicated cross- sectorally to the monitoring of DLT-based applications, identifying standards for best practice, and, where appropriate, recommending regulatory measures and addressing potentially arising consumer protection issues and systemic challenges;

Amendment 116 #

Motion for a resolution
Paragraph 13 a (new)

13a. Calls for the Commission to promote a higher involvement of independent researchers (universities, think tanks) together with private sector to innovate in VCs and VC technology space and allocate sufficient financing through the existing programmes such as Horizon 2020;

Amendment 117 #

Motion for a resolution
Paragraph 13 a (new)

13a. Recommends that the task force have as one of its specific objectives to define the core set of attributes of virtual currencies and DLT conducive to the general interest; believes that these should include the amenability of distributed ledgers to tools (such as open software and cloud technology) that allow easy monitoring by stakeholders, beyond direct participants and supervisory authorities, to increase the chance of detection of suspicious activities;

Amendment 118 #

Motion for a resolution
Paragraph 13 b (new)

13b. Calls for Member States to engage in promoting and educating citizens about VC technology and its possible benefits for business so that VC technologies could be implemented to improve or replace existing payment or financial market infrastructures to achieve higher market efficiency;

Amendment 119 #

Motion for a resolution
Paragraph 14 – introductory part

14. ~~Asks~~Insists that the Commission~~, on the basis of the fi~~ carries out a valid and in~~gs of TF DLT, to~~ depth impact assessment when exploreing the need for ~~a legislative proposal requiring VCs and other DLT scheme actors which do not yet have to comply with suitable standards based on existing regulation to demonstrate whether their~~different options of how to address the possible potentials and risks of VCs and other DLT scheme:s;

Amendment 12 #

Motion for a resolution
Recital C a (new)

Ca. whereas the costs of cash in the EU are too high and unfairly distributed;

Amendment 120 #

Motion for a resolution
Paragraph 14 – introductory part

14. Asks the Commission, on the basis of the findings of TF DLT, to ~~explore the need for a legislative proposal~~carry out an impact assessment on the feasibility of requiring private VCs and other DLT scheme actors which do not yet have to comply with suitable standards based on existing regulation to demonstrate whether their scheme:

Amendment 121 #

Motion for a resolution
Paragraph 14 – introductory part

14. Asks the Commission, on the basis of the findings and proposed roadmap of TF DLT, to explore the need for a legislative proposal requiring VCs and other DLT scheme actors which do not yet have to comply with suitable standards based on existing regulation to demonstrate whether their scheme:

Amendment 122 #

Motion for a resolution
Paragraph 14 – introductory part

14. Asks the Commission, on the basis of ~~the findings of TF DLT~~closely observing and analysing market developments, to explore the need for a legislative proposal requiring VCs and other DLT scheme actors which do not yet have to comply with suitable standards based on existing regulation to demonstrate whether their scheme:

Amendment 123 #

Motion for a resolution
Paragraph 14 – point 1

~~1. if it is used on a large scale, is designed so as to avoid harming consumers and users;~~deleted

Amendment 124 #

Motion for a resolution
Paragraph 14 – point 1

1. if it is used on a large scale, is designed so as to avoid harming consumers and users and provides easily accessible technical documentation of its functioning to the public as well as more detailed technical information of its specific architecture to the supervisory authorities and namely to the TF DLT;

Amendment 125 #

Motion for a resolution
Paragraph 14 – point 1

1. if it is used on a large scale, is designed so as to avoid harming ~~consum~~investors, savers and users;

Amendment 126 #

Motion for a resolution
Paragraph 14 – point 1

1. if it is used on a large scale, is designed so as to ~~avoid harming~~maximise the benefits to consumers and users;

Amendment 127 #

Motion for a resolution
Paragraph 14 – point 2

~~2. if it is systemic, is safe, is sound and has a dependable governance structure;~~deleted

Amendment 128 #

Motion for a resolution
Paragraph 14 a (new)

14a. Calls on the Commission with the support of the TF DLT to develop stress tests containing adverse scenarios for VCs and other DLT schemes and apply them to schemes which are being used on large scale or even have become systemic; suggests discouraging users from employing VCs and other DLT schemes which have failed such tests;

Amendment 13 #

Motion for a resolution
Recital C a (new)

Ca. whereas this is a state of affairs which is still in flux and is far from being stabilised and its social and economic impact is still very limited;

Amendment 14 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Fabio DE MASI

Motion for a resolution
Recital C b (new)

Cb. whereas the progress made in the area of virtual currencies should not be a reason for creating a society without liquid money,

Amendment 15 #

Motion for a resolution
Recital C b (new)

Cb. whereas there are still many unanswered questions in relation to such important aspects as access to the virtual currency and the restrictions on the process of creating it;

Amendment 16 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Fabio DE MASI

Motion for a resolution
Recital C c (new)

Cc. whereas the high volatility of such currencies, in particular Bitcoin, and its lack of correlation with any currency or other reference value, and the fact that over 80% of transactions have a purely speculative function still prevent virtual currencies from performing the basic functions of a currency, such as serving as a medium of exchange, a unit of measure and store of value;

Amendment 17 #

Motion for a resolution
Recital C c (new)

Cc. whereas the right to bear physical money is a fundamental civil liberty and the abolition of that right would leave whole peoples largely dependent on financial institutions,

Amendment 18 #

Miguel VIEGAS, Paloma LÓPEZ BERMEJO, Fabio DE MASI

Motion for a resolution
Recital C d (new)

Cd. whereas virtual money should be under the control of national authorities and national central banks,

Amendment 19 #

Motion for a resolution
Recital C d (new)

Cd. whereas transaction costs go far beyond the operating costs associated with trade, as they involve generating widespread confidence among the general public, something that virtual currencies are still far from being able to provide;

Amendment 2 #

Motion for a resolution
Citation 13 a (new)

– having regard to the FATF’s Guidance for a Risk-Based Approach to Virtual Currencies of June 201514a; __________________ 14ahttp://www.fatf- gafi.org/documents/documents/guidance- rba-virtual-currencies.html

Amendment 20 #

Motion for a resolution
Paragraph 1 – introductory part

1. Stresses that VCs and DLT have the potential to contribute positively to c~~onsumer~~itizens’ welfare and economic development by means of:

Amendment 21 #

Cătălin Sorin IVAN

Motion for a resolution
Paragraph 1 – introductory part

1. Stresses that VCs and DLT have the potential to contribute positively to consumer welfare and economic development, as well as bringing changes to the banking sector by means of:

Amendment 22 #

Motion for a resolution
Paragraph 1 – point a

(a) dramatically lowering ~~transac~~operational costs for payments and transfer of funds, quite possibly well below 1 %, compared to 2% - 4% for traditional online payment systems, and to more than 7 % on average for the cross-border transfer of remittances, hence potentially reducing global total costs for remittances by up to EUR 20 billion; __________________ ~~21 https://www.eba.europa.eu/documents/101 80/657547/EBA-Op-2014- 08+Opinion+on+Virtual+Currencies.pdf 22 https://remittanceprices.worldbank.org/site s/default/files/rpw_report_december_2015. pdf~~

Amendment 23 #

Motion for a resolution
Paragraph 1 – point a

(a) dramatically lowering transaction costs for payments and transfer of funds worldwide, quite possibly to well below 1%, compared to 2% - 4% for traditional online payment systems21 , and to more than 7 % on average for the cross-border transfer of remittances22, the~~nce~~refore, in the most optimistic estimate, potentially reducing global total costs for remittances by up to EUR 20 billion; __________________ 21 https://www.eba.europa.eu/documents/101 80/657547/EBA-Op-2014- 08+Opinion+on+Virtual+Currencies.pdf 22 https://remittanceprices.worldbank.org/site s/default/files/rpw_report_december_2015. pdf

Amendment 24 #

Motion for a resolution
Paragraph 1 – point a

(a) ~~dramatically~~ lowering transaction costs for payments and transfer of funds, quite possibly well below 1%, compared to 2% - 4% for traditional online payment systems21, and to more than 7 % on average for the cross- border transfer of remittances22 , hence potentially reducing global total costs for remittances by up to EUR 20 billion; __________________ 21 https://www.eba.europa.eu/documents/101 80/657547/EBA-Op-2014- 08+Opinion+on+Virtual+Currencies.pdf 22 https://remittanceprices.worldbank.org/site s/default/files/rpw_report_december_2015. pdf

Amendment 25 #

Motion for a resolution
Paragraph 1 – point a

(a) ~~dramat~~significalntly lowering transaction costs for payments and transfer of funds, quite possibly well below 1 %, compared to 2 % - 4 % for traditional online payment systems, and to more than 7 % on average for the cross-border transfer of remittances, hence potentially reducing global total costs for remittances by up to EUR 20 billion; __________________ 21 https://www.eba.europa.eu/documents/101 80/657547/EBA-Op-2014- 08+Opinion+on+Virtual+Currencies.pdf 22 https://remittanceprices.worldbank.org/site s/default/files/rpw_report_december_2015. pdf

Amendment 26 #

Motion for a resolution
Paragraph 1 – point b

(b) more generally reducing the cost of access to finance ~~even without a traditional bank account~~(VCs and VC technologies are all about eliminating counterparties as intermediaries), thereby potentially contributing to financial inclusion and the derailed G20 and G8 ‘5x5 objective’23 ; __________________ 23 http://web.worldbank.org/WBSITE/EXTE RNAL/TOPICS/EXTFINANCIALSECTO R/0,,contentMDK:22383199~pagePK:210 058~piPK:210062~theSitePK:282885,00.h tml

Amendment 27 #

Motion for a resolution
Paragraph 1 – point b

(b) more generally reducing the cost of access to finance even without a traditional bank account, thereby potentially contributing to financial inclusion and the ~~derailed~~ G20 and G8 ‘5x5 objective’23 ; __________________ 23 http://web.worldbank.org/WBSITE/EXTE RNAL/TOPICS/EXTFINANCIALSECTO R/0,,contentMDK:22383199~pagePK:210 058~piPK:210062~theSitePK:282885,00.h tml

Amendment 28 #

Motion for a resolution
Paragraph 1 – point c

(c) enhancing the speed and resilience of payment systems and trade in goods and services thanks to the inherently decentralised architecture of DLT, which might continue to operate reliably even if parts of its network were to malfunction or to be hacked;

Amendment 29 #

Motion for a resolution
Paragraph 1 – point c

(c) enhancing the ~~speed and~~ resilience of payment systems thanks to the inherently decentralised architecture of DLT, which might continue to operate reliably even if parts of its network were to malfunction or to be hacked;

Amendment 3 #

Motion for a resolution
Citation 19 a (new)

– having regard to the statements made by political and business leaders about a ‘world without cash’ at the World Economic Forum at Davos in January 2016,

Amendment 30 #

Motion for a resolution
Paragraph 1 – point d

(d) enabling systems that combine ease of use, low transaction costs and a high degree of privacy, but ~~without full anonymity so that transactions can be traced back~~making transactions traceable in order to make investigations easier for legal authorities in case of malfeasance;

Amendment 31 #

Motion for a resolution
Paragraph 1 – point d

(d) enabling systems that combine ease of use, low ~~transac~~operational costs and a high degree of privacy, but without full anonymity so that transactions can be traced back in case of malfeasance;

Amendment 32 #

Motion for a resolution
Paragraph 1 – point d a (new)

(da) increasing transparency for market participants;

Amendment 33 #

Motion for a resolution
Paragraph 1 – point e

(e) using such systems to develop online micropayment systems ~~that could conceivably replace some of the present data-hungry online business models which significantly challenge~~respects individual privacy;

Amendment 34 #

Motion for a resolution
Paragraph 1 – point e

(e) using such systems to develop secure online micropayment systems that could conceivably replace some ~~of the present data-hungry~~existing online business models which significantly challenge individual privacy;

Amendment 35 #

Motion for a resolution
Paragraph 1 – point e

(e) using such systems to develop online micropayment systems that could conceivably replace some of the present data-hungry online and traditional business models which significantly challenge individual privacy;

Amendment 36 #

Motion for a resolution
Paragraph 1 – point f

(f) potentially allowing different types of traditional and innovative payment mechanisms, from credit cards to mobile solutions, to merge into one secure and user-friendly application, which in turn could favour the diffusion of e-commerce in Europe and the creation of a true Single Market;

Amendment 37 #

Motion for a resolution
Paragraph 2 – introductory part

2. Notes that VCs and DLT schemes entail risks which need to be addressed appropriately, including in present circumstances, so as to generate confidence and lower transaction costs:

Amendment 38 #

Motion for a resolution
Paragraph 2 – point a

(a) the potential for money laundering, terrorist financing and tax fraud based on the ‘pseudonymity’ and ‘mixing services’ that some such services offer, bearing in mind that the traceability of cash transactions tends to be much lower still; __________________ 24 While there is potential for use of VC for terrorist financing, Europol has recently (18 January 2016) pointed out that ‘despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement’.deleted

Amendment 39 #

Cătălin Sorin IVAN

Motion for a resolution
Paragraph 2 – point a

(a) the potential for money laundering, financing of criminal activities, terrorist financing24 and tax fraud based on the ‘pseudonymity’ and ‘mixing services’ that some such services offer, bearing in mind that the traceability of cash transactions tends to be much lower still; __________________ 24 While there is potential for use of VC for terrorist financing, Europol has recently (18 January 2016) pointed out that ‘despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement’.

Amendment 4 #

Motion for a resolution
Recital A

A. whereas a universal applicable definition is not established yet, the EBA understands virtual currencies (VCs) a~~re privately governed~~s a digital representations of value ~~denominated in their own unit of account and referred to as private digital cash,~~that is neither issued by a central bank nor a public authority and which is used by natural or legal persons as a means of exchange and can be transferred, stored or traded electronically; also VCs are understood to be most notably based on distributed ledger technology (DLT), the technological basis for more than 600 VC schemes18 , the most prominent of which to date is bitcoin, with a market share of almost 90 % and a market value of the outstanding bitcoins of around EUR 5 billion19 ; __________________ 18 19http://www.bis.org/cpmi/publ/d137.pdf http://www.bis.org/cpmi/publ/d137.pdf 19 http://coinmarketcap.com/ http://coinmarketcap.com/

Amendment 40 #

Motion for a resolution
Paragraph 2 – point a

(a) the potential for ‘black market’ transactions, money laundering, terrorist financing24 and tax fraud based on the ‘pseudonymity’ and ‘mixing services’ that some such services offer, bearing in mind that the traceability of cash transactions tends to be much lower still; __________________ 24 While there is potential for use of VC for terrorist financing, Europol has recently (18 January 2016) pointed out that ‘despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement’.

Amendment 41 #

Motion for a resolution
Paragraph 2 – point b

(b) the absence of ~~flexi~~reliable and re~~liable~~silient governance structures, or indeed a practical definition of such structures for future regulatory purposes, both of which are needed to ensure a sufficient degree of accountability, especially in some DLT applications such as bitcoin ~~that~~, which creates uncertainty and consumer protection problems, especially in case of challenges unforeseen by the original software designers;

Amendment 42 #

Motion for a resolution
Paragraph 2 – point b

(b) the absence of flexible and reliable governance structures, especially in some DLT applications such as bitcoin that create uncertainty and consumer protection problems, including the absence of a facility to refund a fraudulent or disrupted transaction, especially in case of challenges unforeseen by the original software designers;

Amendment 43 #

Motion for a resolution
Paragraph 2 – point b

(b) the absence of flexible and reliable governance structures, especially in some DLT applications such as bitcoin that create uncertainty and ~~consumer protection problem~~problems with the protection of investors and savers, especially in case of challenges unforeseen by the original software designers;

Amendment 44 #

Markus FERBER

Motion for a resolution
Paragraph 2 – point b a (new)

(ba) risks in the field of consumer protection arising in particular from the high volatility of VCs and the absence of appropriate investment protection systems;

Amendment 45 #

Motion for a resolution
Paragraph 2 – point b a (new)

(ba) the risk of evasion of tax regulations in that, because of the decentralised nature of VCs and the absence of regulation, there may be uncertainties and loopholes in the taxation of VCs;

Amendment 46 #

Motion for a resolution
Paragraph 2 – point c a (new)

(ca) the highly volatile nature of the exchange rate of VCs, which means that gambling on the future value of bitcoins can be a typical aggressive sign of a speculative bubble;

Amendment 47 #

Motion for a resolution
Paragraph 2 – point d

(d) the legal uncertainty surrounding new applications of DLT~~, which may in some instances be the subject of (sometimes ill- suited) existing legislation while in other instances appropriate regulation may still be lacking~~;

Amendment 48 #

Motion for a resolution
Paragraph 2 – point d

(d) the legal uncertainty and lack of EU approach surrounding new applications of DLT, which may in some instances be the subject of (sometimes ill- suited) existing legislation while in other instances appropriate regulation may still be lacking;

Amendment 49 #

Motion for a resolution
Paragraph 2 – point d

(d) the legal uncertainty surrounding new applications of DLT, ~~which may in some instances be the subject of (sometimes ill- suited) existing legislation while in other instances appropriate regulation may still be lacking;~~either due to the constraints of existing legislation, or due to the absence of legislation altogether.

Amendment 5 #

Motion for a resolution
Recital A

A. whereas virtual currencies (VCs) ~~are privately governed~~, which can be decentralised or governed models, are digital representations of value denominated in their own unit of account and referred to as private digital cash, most notably based on distributed ledger technology (DLT), the technological basis for more than 600 VC schemes18 , the most prominent of which to date is bitcoin, with a market share of almost 90 % and a market value of the outstanding bitcoins of around EUR 5 billion19 ; __________________ 18 http://www.bis.org/cpmi/publ/d137.pdf 19 http://coinmarketcap.com/

Amendment 50 #

Motion for a resolution
Paragraph 2 – point d a (new)

(da) the possibility that, as the costs associated with verification increase, so the incentives to create a virtual currency may decrease, leading to a concentration of supply of the currency and possible controls on and manipulation of the entire process;

Amendment 51 #

Motion for a resolution
Paragraph 2 – point d a (new)

(da) notes that, according to the UK Government Chief Scientific Adviser’s report on DLT, it has been estimated that the energy requirements to run Bitcoin are in excess of 1GW and may be comparable to the electricity usage of Ireland. Calls for the research into and promotion of less energy intensive forms of ‘mining’ to ensure the future increase in VC transactions is energy efficient;

Amendment 52 #

Motion for a resolution
Paragraph 2 – point d a (new)

(da) high volatility and rapid fluctuation against fiat currencies;

Amendment 53 #

Motion for a resolution
Paragraph 2 – point d a (new)

(da) the lack of sufficiently transparent and easily accessible technical documentation of the functioning of specific VCs and other DLT schemes;

Amendment 54 #

Motion for a resolution
Paragraph 2 – point d b (new)

(db) notes that in FATF’s guidance for a Risk-Based Approach to Virtual Currencies it is mentioned that a least one supervisor receives a growing number of enquiries on derivative and fund-like products related to Bitcoin; is of the opinion that it is premature to allow the development in derivatives on an underlying of which the nature and risks relating to price formation are so poorly understood;

Amendment 55 #

Motion for a resolution
Paragraph 2 – point d a (new)

(da) the absence of forms of safeguard or guarantee for sums ‘deposited’, because, in the event of fraud, bankruptcy or cessation of operation of trading platforms, no specific legislative protection exists which could cover the losses suffered, and because, in the event of malfunctions, hacking attacks and losses, there is a risk of permanently losing the currency;

Amendment 56 #

Motion for a resolution
Paragraph 2 – point d b (new)

(db) the potential for money laundering, terrorist financing and tax fraud based on the ‘pseudonymity’ and ‘mixing services’ that some such services offer, bearing in mind that the traceability of cash transactions tends to be much lower still; __________________ 1 While there is potential for use of VC for terrorist financing, Europol has recently (18 January 2016) pointed out that ‘despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement’.

Amendment 57 #

Motion for a resolution
Paragraph 2 – subparagraph 1 a (new)

In addition, despite the fact that currently virtual currencies are not widely used and thus their impact on the system is negligible, their diffusion could potentially hamper the effectiveness of monetary policies;

Amendment 58 #

Burkhard BALZ

Motion for a resolution
Paragraph 3

3. Suggests that addressing these risks will require ~~enhancing regulatory capacity so that a timely and proportionate response will reliably be forthcoming if and when the use of some DLT applications were to grow rapidly to become systemically relevant~~a sound legal framework for a timely and proportionate response;

Amendment 59 #

Motion for a resolution
Paragraph 3

3. Suggests that addressing these risks will require enhancing regulatory capacity and technical knowledge of the technological developments so that a timely and proportionate response will reliably be forthcoming if and when the use of some DLT applications were to grow rapidly to become systemically relevant;

Amendment 6 #

Cătălin Sorin IVAN

Motion for a resolution
Recital A

A. whereas virtual currencies (VCs) are privately governed digital representations of value denominated in their own unit of account and referred to as private digital cash, most notably based on distributed ledger technology (DLT), the technological basis for more than 600 VC schemes18 , the most prominent of which to date is bitcoin, which was first used in 2009, with a market share of almost 90 % and a market value of the outstanding bitcoins of around EUR 5 billion19 ~~; __________________ 18 19~~but has not yet reached a critical mass and do not have the nature of a highly liquid asset; __________________ 18 http://www.bis.org/cpmi/publ/d137.pdf http://www.bis.org/cpmi/publ/d137.pdf 19 http://coinmarketcap.com/ http://coinmarketcap.com/

Amendment 60 #

Motion for a resolution
Paragraph 3 a (new)

3a. Declares, however, that if a regulation is adopted at a very early stage, it may not be adapted to a state of affairs which is still in flux and may convey a wrong message to the public about the virtuality or security of virtual currencies;

Amendment 61 #

Hugues BAYET

Motion for a resolution
Paragraph 3 a (new)

3a. Stresses that VCs could present risks in relation to criminal activities, such as financing terrorism, money laundering, tax fraud and tax evasion, as well as other potential challenges which might be caused by the pseudo-anonymity of VCs; indeed, asks the Commission to evaluate and consider the necessity of extending the scope of the current legislation, such as the AMLD with the purpose of preventing and tackling the above- mentioned risks;

Amendment 62 #

Motion for a resolution
Paragraph 4

4. Notes that DLT’s potential to accelerate, decentralise, automate and standardise data-driven processes at lower cost has the potential fundamentally to alter the way in which assets are transferred and records are kept, with implications for both the private and the public sector, the latter being concerned in three dimensions: as a service provider, as a supervisor and as a legislator;

Amendment 63 #

Motion for a resolution
Paragraph 5

5. Points out that clearing, settlement and other post trade management processes currently cost the global financial industry well in excess of EUR 50 billion per year25, and that this iand bank reconciliation processes anre areas where the use of DLT might turn out to be transformational in terms of efficiency, speed, and resilience, but would also raise new regulatory challenges; __________________ 25 https://www.gov.uk/government/uploads/s ystem/uploads/attachment_data/file/49297 2/gs-16-1-distributed-ledger- technology.pdf

Amendment 64 #

Motion for a resolution
Paragraph 5 a (new)

5a. Acknowledges the potential of DLT in assisting governments to reduce money laundering, fraud and corruption;

Amendment 65 #

Motion for a resolution
Paragraph 5 a (new)

5a. Highlights that, in this regard, several initiatives have been put in place by private sector actors, invites competent authorities, both at European and at national level, to monitor such initiatives;

Amendment 66 #

Motion for a resolution
Paragraph 5 b (new)

5b. Further notes that DLT could be used to increase data sharing, transparency and trust not only between government and citizens, but also between private sector actors and clients;

Amendment 67 #

Motion for a resolution
Paragraph 6

6. Recognises the potential of DLT well beyond the financial sector, including the potential of smart contracts, digital signatures and heightened data protection;

Amendment 68 #

Motion for a resolution
Paragraph 6

6. Recognises the potential of DLT well beyond the financial sector, including the potential of smart contracts and the possible synergies with the development of the Internet of Things;

Amendment 69 #

Motion for a resolution
Paragraph 6 a (new)

6a. Underscores the dynamics that the block-chain technologies generate in the business environment as well as their potential for transformations in the real economy in the long-run;

Amendment 7 #

Motion for a resolution
Recital A

A. whereas virtual currencies (VCs) are privately governed digital representations of value, neither issued by central bank or public authority, nor necessarily attached to a fiat currency, either centrally issued and administered or decentralised, denominated in their own unit of account and referred to as private digital cash, facilitating ‘peer-to-peer’ exchange, most notably based on distributed ledger technology (DLT), the technological basis for more than 600 VC schemes18 , the most prominent of which to date is bitcoin, with a market share of almost 90 % and a market value of the outstanding bitcoins of around EUR 5 billion19 ; __________________ 18 19http://www.bis.org/cpmi/publ/d137.pdf http://www.bis.org/cpmi/publ/d137.pdf 19 http://coinmarketcap.com/ http://coinmarketcap.com/

Amendment 70 #

Motion for a resolution
Paragraph 6 a (new)

6a. Notes, however, that neither the ways in which distributed ledgers are used nor the technology behind them have reached maturity: it is not yet possible, for example, to shift all a listed company’s securities from a regulated market to a distributed ledger because the volume of data that needs to be processed is too high – no distributed ledger can, as yet, cope with the sheer volume of data that has to be processed when an issuer launches a complex securities operation;

Amendment 71 #

Motion for a resolution
Paragraph 6 b (new)

6b. Recognises the potential of block- chain technologies for the improvement of public administration functions, including the improvements of land registry systems; Calls on the Commission to monitor and evaluate cases that public administrations employed block-chain technologies to deal with complex problems and explore the potential of similar solutions by listing best practices in the use of block-chain technologies;

Amendment 72 #

Motion for a resolution
Paragraph 7

7. ~~Encourages government agencies to test DLT systems in order to improve the provision of services to citizens, while cautioning on the outsourcing of public services to proprietary private~~In view of the absence of sufficient commercial or regulatory data asks government agencies to conducts proper impact analysis before testing DLT schystemes;

Amendment 73 #

Motion for a resolution
Paragraph 7

7. Encourages government agencies to test DLT systems in order to improve the provision of services to citizens under respect of EU data protection rules, while cautioning on the outsourcing of public services to proprietary private DLT schemes;

Amendment 74 #

Motion for a resolution
Paragraph 7

7. Encourages government agencies to test DLT systems in order to improve the provision of services to citizens, w~~hile cautioning on~~ithout preventing the outsourcing of public services to proprietary private DLT schemes;

Amendment 75 #

Motion for a resolution
Paragraph 7

7. Encourages government agencies to test DLT systems in order to improve the provision of services to citizens and e- government solutions, while cautioning on the outsourcing of public services to proprietary private DLT schemes;

Amendment 76 #

Motion for a resolution
Paragraph 8

8. Recommends that government agencies explore the use of real-time DLT based supervision and reporting tools as part of a RegTech agenda in the financial sector and beyond, including in order to reduce the sizeable VAT gap in the Union26 ; __________________ 26http://europa.eu/rapid/press-release_IP- 15-5592_en.htm;

Amendment 77 #

Motion for a resolution
Paragraph 8

8. Recommends that government agencies and competent authorities which are tasked with analysing large quantities of data explore the use of real-time DLT based supervision and reporting tools as part of a RegTech agenda in the financial sector and beyond, including in order to reduce the sizeable VAT gap in the Union26 ; __________________ 26 http://europa.eu/rapid/press-release_IP- 15-5592_en.htm

Amendment 78 #

Tibor SZANYI

Motion for a resolution
Paragraph 8

8. Recommends that government agencies explore the use of real-time DLT based supervision and reporting tools as part of a RegTech agenda in the financial sector and beyond, including in order to eliminate, or at least reduce, the sizeable VAT gap in the Union; __________________ 26 http://europa.eu/rapid/press-release_IP- 15-5592_en.htm

Amendment 79 #

Motion for a resolution
Paragraph 9

9. Calls for a proportionate regulatory approach at EU level so as not to stifle innovation at an early stage, while taking seriously the regulatory challenges that the widespread use of VCs and DLT might pose;

Amendment 8 #

Motion for a resolution
Recital A a (new)

Aa. whereas VC technology differently from most technologies is being developed from zero, not on the top of existing infrastructures;

Amendment 80 #

Motion for a resolution
Paragraph 9

9. Calls for a proportionate regulatory approach so as not to stifle innovation at an early stage, while taking seriously the regulatory challenges that the widespread use of VCs and DLT might pose; underlines that the threat to existing business models of securities, exchanges, CCPs and CSDs, is only secondary, and will only materialise if virtual currency players remain largely unregulated.

Amendment 81 #

Motion for a resolution
Paragraph 9

9. Calls for a proportionate regulatory approach so as not to stifle ~~innovation~~nor add superfluous costs to innovation and development at an early stage, while taking seriously the regulatory challenges that the widespread use of VCs and DLT might pose;

Amendment 82 #

Motion for a resolution
Paragraph 9

9. Calls for a proportionate and prudent regulatory approach so as not to stifle innovation at an early stage, while taking seriously the regulatory challenges that the widespread use of VCs and DLT might pose;

Amendment 83 #

Motion for a resolution
Paragraph 9

9. Calls for a proportionate regulatory approach so as not to stifle innovation a~~t an early stage~~nd be future proof, while taking seriously the regulatory challenges that the widespread use of VCs and DLT might pose;

Amendment 84 #

Motion for a resolution
Paragraph 9 a (new)

9a. Highlights the similarities between Distributed Ledger Technology (DLT), consisting of a set of nodes participating in a system and sharing a common database and the World Wide Web, defined as a global set of resources, logically interrelated by hyperlinks. Notes the both the DLT and the WWW are based on the Internet, a global system of interconnected mainframe, personal, and wireless computer networks;

Amendment 85 #

Motion for a resolution
Paragraph 9 b (new)

9b. Recalls that the Internet, despite the attempts to promote a multi-stakeholder approach, is still governed by the National Telecommunications and Information Administration, an agency of the United States Department of Commerce;

Amendment 86 #

Motion for a resolution
Paragraph 9 c (new)

9c. Welcomes the creation of a Dynamic Coalition on Blockchain Technologies at the Internet Governance Forum, invites the Commission to promote a shared and inclusive governance of the DLT, so to avoid problems previously encountered in the development of the Internet;

Amendment 87 #

Motion for a resolution
Paragraph 10

10. Points out that ~~key~~, as business models mature, some virtual currency or distributed ledger-based firms may also expand into markets and activities that fall under existing EU legislation, such as EMIR, CSDR, SFD, MiFID/MiFIR, UCITs and AIFMD~~, is likely to apply in line with the activities carried out, irrespective of the underlying technology;~~.

Amendment 88 #

Markus FERBER

Motion for a resolution
Paragraph 10

10. Points out that key EU legislation, such as EMIR, CSDR, SFD, MiFID/MiFIR, UCITs and AIFMD, ~~is likely to apply~~could provide a framework in line with the activities carried out, irrespective of the underlying technology; observes furthermore that more tailor-made legislation will be needed in order to do justice to the specifics of VCs;

Amendment 89 #

Motion for a resolution
Paragraph 11

11. Welcomes the Commission’s suggestions for including VC exchange platforms in the AMLD; ~~recommends further extending the scope to custodian wallet providers if and when~~cautions against extending the scope to custodian wallet providers due to the very low usage of VC currently in the mainstream economy and possible unintended consequences; considers instead that regulatory and law enforcement bodies should dedicate sufficient resources to monitoring VC use and growth in the sector to assess the level of risk and would therefore only support an extension of the scope of the directive to cover custodian wallet providers following a thorough impact assessment and if the use of the VC(s) in question were to become so prevalent that users would no longer routinely need to exchange their VCs into legal tender;

Amendment 9 #

Motion for a resolution
Recital A b (new)

Ab. whereas Bitcoin and other VCs are created as a method of transfer, not as a store of value which is just a secondary use case;

Amendment 90 #

Motion for a resolution
Paragraph 11

11. Welcomes the Commission’s suggestions for including VC exchange platforms in the AMLD in particular in relation to ending the anonymity associated with the exchange of VC for real currencies; recommends further extending the scope to custodian wallet providers if and when the use of the VC(s) in question were to become so prevalent that users would no longer routinely need to exchange their VCs into legal tender;

Amendment 91 #

Motion for a resolution
Paragraph 11

11. Welcomes the Commission’s suggestions for including VC exchange platforms in the AMLD; expects that any proposals in this regard are based on a valid impact assessment; recommends further extending the scope to custodian wallet providers if and when the use of the VC(s) in question were to become so prevalent that users would no longer routinely need to exchange their VCs into legal tender;

Amendment 92 #

Motion for a resolution
Paragraph 11

11. Welcomes the Commission’s suggestions for including VC exchange platforms in the AMLD; recommends further extending the scope to custodian wallet providers if and when the use of the VC(s) in question were to become so prevalent that users would no longer routinely need to exchange their VCs into legal tender; highlights that amendments to the AMLD should be targeted and justified based on a full analysis of the risks of VCs, such the potential of financing terrorist activities;

Amendment 93 #

Renato SORU

Motion for a resolution
Paragraph 11 a (new)

11a. Considers that several virtual and local currencies have been created in Europe as a response to the financial crises and the related credit crunch problems;

Amendment 94 #

Motion for a resolution
Paragraph 12

12. Recommends a review of the EU legislation on payments, including PSD and EMD, in light of the new possibilities afforded by new technological developments including VCs and DLT, with a view to further enhancing competition and lowering transaction costs, including by means of enhanced interoperability and possibly also via the promotion of a universal and non- proprietary electronic wallet;deleted

Amendment 95 #

Motion for a resolution
Paragraph 12

12. ~~Recommends a review of the EU legislation on payments, including PSD and EMD, in light of~~Highlights the importance of a competitive framework for payments, which would provide VCs access to appropriate payment infrastructure and enhance confidence in VC; Stresses, however, that not all provisions of existing PSD legislation would be appropriate for VC and that VC does not meet the required definitions under the EMD; underlines the new possibilities afforded by new technological developments including VCs and DLT, with a view to further enhancing competition and lowering transaction costs, including by means of enhanced interoperability ~~and possibly also via the promotion of a universal and non- proprietary electronic wallet~~;

Amendment 96 #

Markus FERBER

Motion for a resolution
Paragraph 12

12. Recommends ~~a review of the~~that the Commission draw up a comprehensive review of VCs and, on the basis thereof, if appropriate, consider revising the relevant EU legislation on payments, ~~including PSD and EMD,~~ in light of the new possibilities afforded by new technological developments including VCs and DLT, with a view to further enhancing competition and lowering transaction costs, including by means of enhanced interoperability and possibly also via the promotion of a universal and non- proprietary electronic wallet;

Amendment 97 #

Motion for a resolution
Paragraph 12

12. Recommends a ~~review of~~n analysis of whether any amendments should be made to the EU legislation on payments, including PSD and EMD, in light of the new possibilities afforded by new technological developments including VCs and DLT, with a view to further enhancing competition and lowering transaction costs, including by means of enhanced interoperability and possibly also via the promotion of a universal and non- proprietary electronic wallet;

Amendment 98 #

Motion for a resolution
Paragraph 12

12. Recommends ~~a review~~that an assessment be carried out of the EU legislation on payments, including PSD and EMD, in light of the new possibilities afforded by new technological developments including VCs and DLT, with a view to further enhancing competition and lowering transaction costs, including by means of enhanced interoperability and possibly also via the promotion of a universal and non- proprietary electronic wallet;

Amendment 99 #