European Union To Adopt Tighter Control Over Bitcoin

European Union Control Bitcoin

Recently the Executive Branch of the European Union adopted a proposal by revising their existing anti-money laundering (AML) protections, which meant to make it even more difficult for money launders and terrorists to operate.

Somewhere in the list of changes which were proposed by the European Commission is a measure which is specifically designed to prevent the terrorists from using digital currencies and various other financial tools like prepaid cards which are deemed as a risk for abuse.

Under their new terms proposed by the Executive Branch of the European Union, the digital currency exchanges as well as custodian wallet providers will be brought under the EU’s Anti-Money Laundering Directive’s purvey.

They will also be required to apply the due-diligence controls which will end the anonymity which is associated with these type of exchanges.

In a recent statement, the first Vice President of the Commission Frans Tummermans said “Today’s proposals will help national authorities to track down people who hide their finances in order to commit crimes such as terrorism.”

The European Commission also presented a parallel proposal which will be meant to prevent the techniques for tax evasion as revealed in the leaked documents of Panama Papers, which were released this year where they catalogued different methods to hide money in off-shore accounts. It will also help evade money laundering and as well as tax avoidance.

As mentioned in the new proposal, there will be increased protection for the whistleblowers and additional information being shared between the other member states under EU.

The European Union has long aggressive steps this year towards the regulating digital currency as they are concerned about the perceived ‘anonymity’ of the user.

In January this year, the European Parliament gathered in Brussels, the capital of Belgium to discuss about the strictness over the controls that they should be having over digital currency, following the terrorist attacks in Paris. Few weeks later, the parliament proposed a task force to dig deep and research the technology and information about digital currencies. Under the recent decision made by the European Union, the related proposal will be submitted for consultation and adoption to the European Parliament.

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1 Response

  1. July 8, 2016

    […] is no physical jurisdiction existed in these wallets and does not require any assistance of the expensive financial intermediaries. The people who engaged in the illegal drugs activities requests payment in bitcoins regularly and […]

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