Sunday, December 8, 2019

Europe’s New Cryptocurrency Policy to Combat Money Laundering And Terrorism

Avatar
Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering [email protected] [email protected]

Europe has put in place policies that will ensure that the crypto market is well regulated. These are policies that will manage crypto-related industries in a bid to reduce money laundering, terrorism, and other security issues that may be inevitable. This will serve as a security measure to protect its citizens who are also investors of digital assets.

The FATF’s Guidance to Public and Private Sectors

The policy which Europe is adhering to was set up by the Financial Action Task Force (FATF). This is an organization that has put in place several guidelines which are commonly known as the “risk-based-approach.” Currently, this organization provides guidance for the life insurance sector, securities sector, virtual currencies, banking sector, and even legal professionals.

At the moment, Europe now has its countries guided by the FATF’s policies. There are other countries including Switzerland, Netherlands, Germany, Turkey, Sweden, Ireland, Spain, Iceland, Denmark, Belgium, France, Austria, Italy, Norway, Greece, Finland, and Luxembourg. Although these policies by the FATF serve as a guide to each sector and country, adhering to them is optional.

Crypto-Related Industries Need to be Properly Licensed and Registered

The FATF policies were amended to give more clarity as to who should be subjected to its guidelines especially when it comes to regulating the crypto market. Therefore, in the case of virtual currency, the policy now states that exchanges, ICOs, and wallet providers need to be properly registered and licensed in their respective countries.

Generally, the industry will be subjected to CFT regulations and the AML protocols. The organization will also establish the standards on which digital assets issuers are to follow. Also, other organizations such as Banks that may want to be associated with crypto-related projects or the Blockchain technology will have rules established for them.

The FATF report states that;

There is limited evidence of the current generation of cryptoassets delivering benefits, but this is a rapidly developing market and benefits may arise in the future. There are substantial potential risks associated with cryptoassets, and the most immediate priorities for the authorities are to mitigate the risks to consumers and market integrity and prevent the use of cryptoassets for illicit activity.

It was earlier reported sometime in October this year that the Financial Conduct Authority, HM Treasury, Bank of England are working hand-in-hand to regulate the cryptomarket. Other than Europe, South Korea is trying hard to regulate the crypto industry and its operations within the country. In light of this, several ICOS have been banned and there’s a Know Your Customer (KYC) set in place for exchanges and ICOs.

 

- Advertisement -
- Advertisement -

Latest News

Ethereum Price Weekly Forecast: ETH Reversal Could Unfold Above $158

ETH price is struggling to gain pace above the $152 and $158 resistance levels against the US Dollar. The price...

Bitcoin Weekly Forecast: BTC Won’t Go Quietly, Risk of Bounce Grows

After forming a base above $7,000, bitcoin price climbed above the $7,500 resistance against the US Dollar. The price is currently correcting gains and it...

Conceptual Study of Technology-led Startup Companies (or Insurtechs’) Within the Insurance Industry – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Insurtech: Fresh Legs for a Tired Industry" report has been added to ResearchAndMarkets.com's offering. The Report Includes: A conceptual study of technology-led startup companies...

Horizon8 Opens European Headquarters in Cork with Plans for up to 50 Jobs

CORK, Ireland--(BUSINESS WIRE)--Horizon8, an innovative, technology solutions company today opens its European headquarters in Cork, Ireland. Formerly called HengTian, the Company was created in...

Global Blockchain in Energy Market to 2024: Focus on Type (Public, Private), Components (Platform, Hardware), End Users (Power, Oil & Gas) – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Global Blockchain in Energy Market: Focus on Type (Public, Private), Components (Platform, Hardware), End Users (Power, Oil & Gas), Applications, Region, Stakeholder...