Friday, April 20, 2018

European Union puts down the hammer on cryptocurrency traders by introducing identity requirements on exchanges

On April 19. the European Parliament voted overwhelmingly to introduce new rules for cryptocurrency trading on exchanges that will remove all facets of anonymity for investors.

Passing with the vote count of 574-13, the EU is now ready to begin implementation of tighter regulations over cryptocurrency exchanges which will include due diligence procedures, identity verification, and exchange registration.

Graphic courtesy of Coin Telegraph
Members of the European Parliament supported on Thursday an agreement reached with the European Council in December to bring cryptocurrencies under “closer regulation”. The decision was passed with 574 votes, 13 nays and 60 abstentions, the parliament’s press service announced. The agreement represents the fifth and latest update of the EU Anti-Money Laundering Directive. 
The amendments are intended to address “risks linked to virtual currencies”. To end the anonymity associated with them, cryptocurrency trading platforms and custodian wallet providers will be obliged to introduce customer due diligence controls, including identity verification procedures. In the future, these businesses will apply for registration in order to offer regulated exchange and payment services. - Bitcoin

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