With a particular interest in cryptocurrency, the European Union is set to add to the country’s cryptocurrency regulation.
European Union To Add To Cryptocurrency Regulations
The European Union plan a meeting slated to hold on September 7, targeted at discussing the challenges of cryptocurrency regulations implementation in the member states.
The organisation has already made some regulations earlier on cryptocurrency. However, the implementation has been difficult amidst the member states. The meeting will feature a discussion on the challenges of countries in implementing cryptocurrency, cryptocurrency usage for money laundering, tax evasion, terrorist financing, among others. The meeting will be attended by the finance ministers of the member states.
As reported by Bloomberg, the discussion of blockchain implementation and ICO as a means of financing crypto startups will also be discussed at the meeting.
The E.U. Cryptocurrency Regulations
The meeting which will be a follow up on the E.U. Fifth Anti-Money Laundering Directive, which also involved cryptocurrency. The directive that seeks to fight crimes perpetrated through cryptocurrency stated that,
“To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to obtain information allowing them to associate virtual currency addresses to the identity of the owner of virtual currency. In addition, the possibility to allow users to self-declare to designated authorities on a voluntary basis should be further assessed.”
The directive also noted the acts of cryptocurrency exchanges in the European Union not obtaining the information of their clients. The directive place the onus of reporting suspicious criminal transactions on the cryptocurrency exchanges to appropriate authorities. The implementation of the directive is to take 18 months. The meeting will be seeking to make the application more comfortable for the member states.
The Importance Of Cryptocurrency Regulation
The anonymity the cryptocurrency offers to its community of users has made currency become a tool for financial crimes and narcotic transactions to take place. Though over the years, since 2009, that the first cryptocurrency was introduced, it has seen broad adoption for legal purposes, as many invests in it speculatively.
The lack of regulatory features has continuously militated the institutional acceptance that is necessary for cryptocurrencies at large. The same reason has been cited by the U.S. SEC for the rejection of Bitcoin ETF several times.
The role taken by the European Union in implementing cryptocurrency regulations will aid the convenient adoption of cryptocurrency by countries, as is expected to spread to other continents.