European Parliament approved stricter cryptocurrency regulations that will reduce anonymity in use of digital currencies and require exchanges to be registered

Briefing

European Parliament approved stricter cryptocurrency regulations that will reduce anonymity in use of digital currencies and require exchanges to be registered

May 11, 2018

Briefing
  • Stricter Cryptocurrency Regulation – Members of European Parliament (MEP) voted 574 to 13 in favor of passing stricter regulations on cryptocurrencies to prevent anti-money laundering and terrorism financing
  • Existing Rule Expansion – Expanded European Union’s Anti-Money Laundering Directive with fifth and latest update, as agreed upon by European Parliament and Council on December 2017
  • Reduced Anonymity – Cryptocurrency exchange platforms and wallet providers required to verify identity of customers, removing anonymity in use of cryptocurrencies
  • Required Registration – Digital currency exchange platforms and wallet providers have to be registered, as well as currency exchanges, check cashing offices, and service providers
  • Timeline – Updated regulation will take effect three days after being published in EU’s Official Journal, with member states having 18 months to turn new rules into national law

Accelerator
Web3 Ecosystems, Tokens and Consensus Mechanisms

Market Disruption
Innovation, Competitiveness and Trade, New Payment Technologies, Privacy and Security

Sector
Financial Services

Organization
European Parliament

Source

Original Publication Date
April 23, 2018

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