Altcoin Reviews

New European AML Regulations Look Set to Impact Cryptocurrency



Reported today on Being Crypto

For the full article visit: https://beincrypto.com/how-the-new-european-aml-regulations-look-set-to-impact-cryptocurrency/

New anti-money laundering (AML) regulations are coming into force by January 10 in Europe. The rules, which address cryptocurrency companies for the first time, look set to have a large impact on the industry.

The Fifth Anti-Money Laundering Directive (5AMLD) is set to take full effect in less than a month. It was first detailed in May last year.

The rules, for the first time, define what is meant by the term virtual currency:

“… a digital representation of value that is not issued or guaranteed by a central bank or a public authority.”

The incoming regulations will require those offering custodial services for virtual currencies to abide by the AML regulations laid down under 4AMLD. This will mean that exchange platforms offering services within the European Union will need to submit information about customers to relevant authorities and to perform due diligence checks on user activity deemed suspicious.

This is set to have a dramatic impact on the industry. As reporter Larry Cermak (@lawmaster) points out, the likes of Binance and OKEx, two absolute giants of the exchange industry, will suddenly have to follow the new regulations or cease offering services to Europe.

Binance, one of the most consistently popular exchanges thanks to its high withdrawal limits without requiring know-your-customer checks, would need to overhaul its own policies. It currently allows users to withdraw two BTC without any KYC check. This is clearly not compliant with AML regulations and would need addressing. Alternatively, it might decide to withdraw its services entirely from the EU.

EU’s Anti-Money Laundering Directive (5AMLD) is set to take effect in two weeks. Exchanges will have to register and let authorities obtain KYC of users. This means that even Binance and OKEx, both based i

source

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
Close
Close