The General Affairs Council of the European Union (EU) announced the adoption of the new cryptocurrency regulation amended by the European Parliament to eliminate cryptocurrencies anonymity in the services of cryptocurrency exchange platforms, crypto wallets, and cryptocurrency prepaid cards.
In the quest to “address the risks associated with prepaid cards and cryptocurrencies”, since May 14th, the European Union has, without debate, undertaken to use the provisions set out in the new Law for the Prevention of Money Laundering and Financing of Terrorism. This resolution provides for an extension of access to “beneficial ownership” information by regulators, in order to eliminate as far as possible anonymity in transactions linked to companies in the Bitcoin (BTC) ecosystem.
On the other hand, cryptocurrency prepaid cards must be linked to verified identifications and restricted to a maximum of 250 Euros. An obligation to which they add the possibility for users themselves to be allowed to “self-declare” their identity on a voluntary basis.
The new cryptocurrency regulation adopted by EU aims more at cryptocurrency prepaid cards
In addition, the 2015 amendment to the legislation provides for an improvement in “transparency between companies and trusts”, which seeks first to facilitate the monitoring of the financial authorities of each country, as well as to require cooperation between research units so that they can operate more efficiently.
The just mentioned points are not only directed towards the illicit use of cryptocurrency, but also towards finances in general that are used to finance illegal activities.
European Union states will need to adapt their financial regulatory policies to this new legal framework regarding cryptocurrency regulation over the next 18 months for legal persons and other entities, and over the next 20 months for trusts.
It is important to note that the legislation, according to French MP Judith Sargentini, is mainly focused on the control of cryptocurrency prepaid cards, as they were used to rent and buy vehicles that served to prepare the terrorist attacks that happened in France in 2016.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.