European Parliament is on stricter regulations on Crypto exchange

  Now, crypto exchanges and wallet provider must introduce customers including verification. The producer has been undertaken by European Parliament in favor of strict regulations on Crypto exchange. Since the new approach come with the EU Anti-Money Laundering Directive’s latest update.

The new approach under Closer Regulation

On Thursday, the agreement with the European Council of European Parliament members was that in December to get cryptocurrencies under “closer regulation”. Thus, the decision was passed with 574 votes, 13 days and 60 abstentions. It is the EU Anti-Money Laundering Directive representing fifth and latest update.

Noticeably, it is to overcome the “risks linked to virtual currencies“. With the regards, both wallet providers and crypto trading platforms have to introduce customers. However, it is due to diligence controls including identity verification procedures. In the coming days, those businesses in order to offer services like regulated and payment need to apply for registration.

Further, European officials claim that they are introducing measures in response to terrorist attacks in Brussels and Paris. Krisjanis Karins, co-rapporteur on the amendments,

“Criminals use anonymity to launder their illicit proceeds or finance terrorism. In his words, the new legislation will “address the threats to our citizens… by tightening rules regulating virtual currencies and anonymous prepaid cards.”

Meanwhile, his colleague Judith Sargentini added,

“We lose billions of euros to money laundering, terrorist financing, and tax evasion – money that should go to fund our hospitals, schools, and infrastructure. We introduce tougher measures, widening the duty of financial entities to undertake customer due diligence. This will shine a light on those who hide behind companies and trusts and should keep our financial systems clean”.

Counterpart of the firm

Till date, the only coordinated move so far was the declaration on the Establishment of a European Blockchain Partnership. Previously around, 22 countries agreed to cooperate in launching EU-wide blockchain applications. The initiative aims to “avoid fragmented approaches” in the deployment of blockchain-based services “for the benefit of the public and private sectors”. The document, however, does not cover cryptocurrencies.

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Image Source:- European Parliament

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