July 9, Monday, a new fifth Directive of the European Commission’s anti-money laundering (AML). The issues presented in it relate to the regulation of cryptocurrency and provide a regulatory framework for European public authorities to protect consumers from financial fraud in this area.
In particular, according to a press release of the European Commission, the new rules are more strict in respect of ensuring transparency of transactions with anonymous parties with the aid of prepaid cards and cryptocurrency trading platforms. All that is necessary to effectively counter money laundering and financing of terrorism.
As writes the European Commission, the authorities need to know and understand how digital currency used in the country, and, accordingly, to control this process. So they can protect citizens from the possible use of cryptocurrencies for illegal purposes. Thus the control is impossible without information about who owns scriptactive. The European Commission even suggests the participation of the FIUs in search of information that will allow you to map addresses of cryptocurrency wallets with a real proven personalities. In addition, the Commission intends to develop a mechanism for obtaining independent reports from owners.
As for the so-called local cryptocurrency, or currency of the local areas, the new Directive does not consider them as full-fledged digital currency. Thus, they “drop out” from the sphere of influence of this regulatory act.
Under the new Directive, member States of the European Union shall, within 18 months to change its legal framework in the countries. While 28 members have already tentatively agreed on the provisions referred to in the document in April. To read them in more detail you can read the separate information sheet.
We will remind, recently the Government of Canada introduced a draft law regulating cryptocurrency exchanges and payment service providers. Now they will have to report large transactions, to comply with the principles of the AML, and to introduce a system of “Know your customer” (KYC) for transactions to a certain amount.
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