European Union – Billionaire365

New Cryptocurrency Regulation Has Been Adopted By EU And Targets More The Cryptocurrency Prepaid Cards

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.

Anna Galvez

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.

Anna Galvez