Thursday, 20 April 2023

EU parliament approves world's most sweeping cryptocurrency rules

EU Parliament Approves World's Most Sweeping Cryptocurrency Rules

EU Parliament Approves World's Most Sweeping Cryptocurrency Rules

The European Parliament has approved new rules that will regulate cryptocurrencies and bring them under the same anti-money laundering (AML) and counter-terrorism financing (CTF) rules as traditional financial institutions.

The new rules, which were approved by a vote of 574 to 13 with 60 abstentions, are the most sweeping cryptocurrency regulations in the world and will require cryptocurrency exchanges and wallet providers to identify their customers and report any suspicious activity to authorities.

The regulations also include provisions for the creation of a central database of cryptocurrency users and their transactions, which will be accessible to authorities across the EU.

While some cryptocurrency advocates have criticized the regulations as overly burdensome and potentially damaging to innovation in the industry, others have welcomed the move as a necessary step towards greater legitimacy and mainstream adoption of cryptocurrencies.

"This is a positive development for the cryptocurrency industry," said Thomas Lee, co-founder of Fundstrat Global Advisors. "It will help to weed out bad actors and increase confidence in the market."

Key Provisions of the Regulations

  • Cryptocurrency exchanges and wallet providers must register with authorities and verify the identity of their customers.
  • Exchanges and wallet providers must report any suspicious activity to authorities.
  • A central database of cryptocurrency users and their transactions will be created.
  • Authorities will have access to the database and will be able to request information from exchanges and wallet providers.
  • Penalties for non-compliance with the regulations include fines and the suspension or revocation of licenses.

The regulations are expected to come into effect in 2020 and will apply to all EU member states.

While the regulations may pose challenges for some cryptocurrency businesses, they are seen as a necessary step towards greater legitimacy and mainstream adoption of cryptocurrencies. As the industry continues to evolve and mature, it is likely that we will see further regulation and oversight in the coming years.

For more information on the new regulations, visit the European Commission's website.



https://www.lifetechnology.com/blogs/life-technology-technology-news/eu-parliament-approves-worlds-most-sweeping-cryptocurrency-rules

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