Insufficiencies in European Union law and member state national law regarding cryptocurrency regulations and its illicit use

Cryptocurrency market transactions and provided opportunities for individuals have highly increased the use of this new paradigm for pursuing illicit activities. The European Union has reacted to this situation and have started to imply certain regulations to restrict criminal activities such as tax evasion, money laundering, terrorist financing and others. The aim of this research is to recognize possible insufficiencies in directives, normative acts and proposals provided by the EU. Understanding the problems within these regulations will help in the constant development and creation of a unified legislation for cryptocurrency users within the EU, and possibly indicate a roadmap for other nations. Recommendations on solving temporary legislative issues regarding the cryptocurrency market in the European Union will improve the overall legislation provided, and lift off some weight of the Member States amending National Laws in efforts of trying to restrict illicit use of this new digital market