Bulgaria’s Financial Supervision Commission (FSC) To Monitor Crypto Market
We are living new times for cryptos. As the market exploded and then imploded with the rise and fall of the price of Bitcoin, regulators started to pay closer attention to the market. Now, the Financial Supervision Commission (FSC) of Bulgaria is going to start monitoring the crypto market in an effort to create measures to prevent money laundering and fraud using cryptos.
The organization will start to monitor and analyze new cryptos and Initial Coin Offerings (ICOs) officially launched in the country.
The Main Areas In Which The Bulgarian FSC Will Work
There will be a total of four specific main areas of action. One of them will be the creation of innovation hubs to foment regulated crypto products; cyber-security risk management; analysis for the regulatory framework in relation to outsourcing; and setting up the requirements for possible licensing so that companies can use the new technologies for their businesses.
According to the FSC, the main challenge is to balance the benefits of using the blockchain technology at the same time that the safety of the consumers is maintained and that the investors are protected from scams.
Fintech Sectors Grew Recently
Data from the European Securities and Market Authority (ESMA) shows that the fintech sector has reached a total of $19 billion USD in the first nine months of 2016, which is equal to a fivefold rise compared to the numbers of 2013. This means that the sector needs stricter regulation.
Especially because the market grew so much, crypto-related crimes have also grown in numbers and importance. Because of this, many regulation companies like the ones in Bulgaria have been looking for criminals and intensifying the definition of its laws.
Bulgaria’s government is the second richest Bitcoin (BTC) owner in the whole world because of the assets that it has seized of the possessions of cyber criminals. In May 2017, a stash of 213,519 BTC was seized over by the authorities. This quantity of money is enough to pay off 25% of the country’s national debt. The coins are worth more than $1.2 billion USD today.