New Cryptocurrencies Regulations Have Been Adopted Yesterday In The European Union

New cryptocurrencies regulations were adopted yesterday, as the deputies of the European Parliament approved, with a total of 574 votes in favor, 13 against and 60 abstentions, an amendment to the law on the prevention of money laundering and financing of terrorism to eliminate anonymity in the services related to money exchanges, portfolios and prepaid cards based on cryptocurrencies.

This amendment will make mandatory the identification of users of prepaid cards financed through cryptocurrencies and that have a limit of between 150 and 250 euros. According to the deputy Judith Sargentini, the French authorities were insistent on this point since the recent terrorist attacks on French soil were financed using this kind of prepaid cryptocurrencies cards.

On the other hand, cryptocurrency exchange operators and service providers must also put an end to the anonymity in their services.

The new cryptocurrencies regulations aim to create troubles for criminals, not the honest Europeans, according to the regulators

Deputy Krisjanis Karins stated that when the cryptocurrencies holders who wish to buy goods and services will have to convert them to Euros, or other fiat currency and it is at this point that the role of the law against money laundering comes in.

That’s when the cryptocurrencies will enter the European banking system and at this point we want the banks to ask who this client is and where the money originates (…) The objective is to create problems for the criminals but not for the common and honest Europeans.

Krisjanis Karins, Deputy, European Parliament

This amendment also imposes greater controls in the banking system to combat money laundering and terrorist financing, since provisions for the registries of trustee beneficiaries, and a register of bank accounts and security accounts are now included.

It should be noted that these changes in European legislation would take effect 3 days after their publication in the Official Journal of the European Union, after which the member states will have 18 months to incorporate these new rules into their national legislation.

Cryptocurrencies regulations have recently been passed in other jurisdictions to prevent money laundering and the financing of terrorist activities with crypto coins. In this regard, a few days ago in Taiwan and Australia, respectively, authorities announced the preparation of a regulatory project and the approval of a new law.

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About the Author: Anna Galvez

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