Europe to Require Customer Verification on Cryptocurrency Exchanges

EU sets sights on crypto exchanges.

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Last Thursday, the European Parliament swung pro in terms of implementing tighter cryptocurrency regulations. The decision kicked into effect after 574 votes were passed in favor of a tighter watch over crypto.

The outcome for cryptocurrency exchanges.

The decision reached by the EU parliament will require digital assets to implement identity verification and due diligence procedures on their platforms. Additionally, crypto exchanges will be required to apply for necessary registrations and permits in order to continue providing their services.

Apparently, this decision stems from the EU’s desire to cut back on the anonymity associated with digital assets, including platforms on which they are traded, as well as cryptocurrency wallets.

The decision to introduce more stringent regulations also stems from the European terrorist attacks on Paris and Brussels. Which took place in 2015 and 2016, respectively. So, in essence, these regulations are aimed towards keeping the European financial ecosystem clean and pushing back on terrorism funding and money laundering.

Better coordinated procedures.

As it stands now, the EU has no coherent procedures in terms of labeling and handling cryptocurrencies. So, this update to the Anti-Money Laundering Directive will be enforced with the hopes of establishing policies regarding cryptocurrencies in Europe that are significantly clearer than what is the norm today.

Currently, different nations within the EU all have variating laws pertaining to how cryptocurrencies are handled on a national level. Tax rates also vary from nation to nation. So, basically, at the moment, the regulatory situation pertaining to cryptocurrencies remains to be quite unorganized and uncoordinated. It’s worth mentioning, however, that earlier in April, over 20 EU countries agreed to launch and establish a European Blockchain partnership.

The goal of this partnership is to provide citizens of the EU with Blockchain based services. Which, is ultimately a proper step towards the technologies mass adoption.

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