The European Parliament wants to impose a firmer set of regulations for the Digital Currency Sector. Proper Identity Verification will be a must for any exchanges and wallet services. All the outlets will have to register themselves once again in order to keep offering their services. These new moderations are a part of the Anti-money Laundering Directive.
Cryptocurrency under “Closer Regulation”:
The European Parliament has come to an uniformity of decision to put the Crypto sector under “Closer Regulation”. This judgement was accepted with 574 supporters, 13 detractors and 60 non-participators. This amendment is the fifth update of the Directive.
Why “Closer regulations”?
This initiative to put cryptocurrency under “closer regulations” has been taken to curb the risks that comes along with it. Since anonymous trading threatens with the risks of Crypto illegalities, the amendment focuses on obligations to provide proper identity verification. The various business outlets and exchanges will have to re-register themselves to keep up with the new update.
The authorities have stated that this new introductions are made in order to make sure that the terrorist attacks of Paris and Brussels never happen again. “Criminals use anonymity to launder their illicit proceeds or finance terrorism”. The new amendments will “address the threats to our citizens… by tightening rules regulating virtual currencies and anonymous prepaid cards”, said Krišjānis Kariņš.
“We lose billions of euros to money laundering, terrorism financing, and tax evasion – money that should go to fund our hospitals, schools and infrastructure”, Mr Judith Sargent commented.
What the Directive will do?
This new amendment will be enforced three days after the official documents of EU are published. The members of European Union will then get a tenure of eighteen months to rewrite the rules into their national law. These laws will restore the incoherent and incongruous stances of the crypto policies. The members have long awaited the approval of a common regulatory framework while working on their individual policies.