European Union Authority Cracks Down Bitcoin Amidst New Fears of Terrorist Attack
Dec 18, 2017 Posted / 3249 Views
The European Union is updating a 2015 landmark regulation, the fourth Anti-Money Laundering Directive, to include Bitcoin Regulations. The regulation has been used to register company owners to ensure easy access by EU authorities.
According to the European Union’s Commissioner for Justice, Věra Jourová, the agreement is tailored to bring more transparencies to improve the current mechanisms being used against money laundering and prevent the flow of finance which are used to fund terrorist activities.
The new regulations which are to be adopted by all countries within the European Union will require Bitcoin exchanges and wallet providers dealing in bitcoin to implement Know Your Customer Policies as a requirement. This is according to a recent Reuters report on the matter.
Since the beginning of 2017 Bitcoin has caused lots of worries and uncertainty to many governments across the world. Several moves aiming to analyse possibilities of adopting, banning or regulating it has remained a major topic of discussions in a series of countries for the whole year. According to the recent terrorist attacks in Brussels, Germany, and Paris within the last two years alone, European authorities are exploring all possible means to cut off terrorist financing in the region. In this regard, Bitcoin has been singled out as a possible route via which money can be wired from abroad to finance domestic terrorist agendas with the EU block.
The German newspaper, Deutsche Welle, during a recent press release highlighted all the five components of the new regulation developed by the European Union. Platforms and wallet providers that transfer Bitcoins and hold cryptocurrencies for their users are required to identify their users. A limit has been put on the use of prepaid payment cards. A new requirement to ensure transparencies in the operations of bitcoin companies to their approved board of trustees has been enacted. Nations investigators will be allowed more access to information including bank account registers. Data access is granted to persons who can demonstrate a legitimate interest, DW news explained the implications of the new regulation.
Some countries in the European Union like Ireland, Cyprus, Britain, Malta, and Luxembourg were not okay with this new regulation during negotiations. These countries are particularly more liberal and have been developing their FinTech industries over the years so this move could be a step back for the Fintech industry in the countries. However, this amendment still has to be approved by all the European Union member states before it could be processed at regional level supposedly in 2019.
It has become a common practice for authorities to easily link Bitcoin Usage to terrorist financing although no actual data is available to confirm it. The features of Bitcoin make it appropriate to be used for the said purpose. But any significant transfer of money, Even in the Bitcoin Blockchain cannot go on smoothly without leaving any paper or electronic footprints. It's true some Cryptocurrencies are impossible to trace but Bitcoin is rather traceable on the Blockchain.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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