EU Strengthens Crypto Regulations
An agreement within European Parliament aims to introduce stricter regulations for cryptocurrency owners.
A scrutiny that tackled terrorism financing and money laundering was issued on April 19th. According to the EU press release, it resulted in 574 positive, 13 negative votes, and 60 abstentions.
The new regulations will pursue to end the anonymity on crypto exchanges and platforms. Wallet users will have to go through rigorous identity verification procedures, which will be required by the wallet providers in order to increase security and transparency. Service providers like wallets, crypto debit cards, trading platforms, and exchanges will have to be approved by the local authorities in order to become compliant with the new laws.
European representatives commented that the new legislation is a measure against potential terrorist attacks. The co-reporter, Krisjanis Karins, stated that the regulations would help reduce the threats posed to citizens by revealing more information behind firms and tightening the rules for cryptocurrencies.
Another co-reporter, Judith Sargentini, added that “billions of euros are lost due to money laundering, tax evasion and terrorism, which are the money to fund the infrastructure”.
Virtual currencies aren’t the only ones that fall under the new restrictions. The threshold for prepaid cards will be reduced from €250 to €150.
EU states will have 18 months to transpose the new regulations. This will take place three days after the new Anti-Money Laundering Directive will be published in the European Union’s Official Journal.
Many members of the European Union have already applied internal regulations. Several governments have come to decisions to legalize cryptocurrencies in order to tax the gains. At the moment, the tax rates in Europe vary from 0 to 50 percent.