In Accordance With the New Directive, New Rules for the Cryptocurrency Area Will Be Established in the EU Territory

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According to the data, the fifth EU Anti-Money Laundering Directive entered into force on July 9. The directive was developed to establish norms and standards for the regulation of cryptocurrency sulfur. Thus, European financial observers are struggling with the problem of money laundering and terrorist financing.

According to the EU Commission, in accordance with the directive, more stringent rules will be introduced to ensure transparency in the field of “anonymous payments through prepaid cards” and “virtual exchange rates” used for money laundering and terrorist financing. The Commission states:

“The 5th Anti-Money laundering directive also increases the cooperation and exchange of information between anti-money laundering (AML) and prudential supervisors, including with the European Central Bank”.

Also, the Commission reported that in order to increase protection in order to avoid using cryptocurrency for illegal purposes, the relevant authorities should understand how to use the cryptocurrency and monitor it:

“For the purposes of anti-money laundering and countering the financing of terrorism (AML/CFT), competent authorities should be able, through obliged entities, to monitor the use of virtual currencies”.

To ensure effective control of the cryptocurrency sphere, in the opinion of the Commission, regulators should be able to establish a link between cryptocurrency addresses and their owners, and also to form a mechanism for self-reporting:

“To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to obtain information allowing them to associate virtual currency addresses to the identity of the owner of virtual currency. In addition, the possibility to allow users to self-declare to designated authorities on a voluntary basis should be further assessed”.

It is worth noting that the new directive of the Commission will not affect the so-called local currencies, which function within a limited space. The general summary of the Directive was presented in a separate table.

It is reported that EU member states have 18 months at their disposal for the adoption of relevant laws at the state level.

This post is also available in: ruРусский

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