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Setback: EU Parliament to Regulate Cryptocurrency

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EU Parliament

The cryptocurrency world just had a bombshell dropped on it by the EU Parliament.

In fact, they voted in favor of agreeing to significantly tougher regulations on the digital assets.

It is a grim day for the freedom-loving Bitcoin community and cryptocurrency sphere

As a matter of fact, the members of parliament came together in a rare super-majority. They backed the December of 2017 European Council agreement. This included measures to stop the utilization of cryptocurrency in terrorism financing and money laundering.

Consquently, results tallied to 574 in favor of the measure and only 13 against it, with 60 abstaining.

This newly enacted legislation will tackle the fintech’s anonymity. Furthermore, participants in the crypto-sphere can now expect tough new rules. These will cover cryptocurrency platforms, exchanges, and also wallet venders.

Legislation Spells the End of the Free-Wheeling Crypto-Verse

For the first time, customer verification will now be required, along with typical due diligence and know your customer legwork.

It is the first death blow to the free-wheeling cryptocurrency character that so many have loved for so long.

Consequently, three days after this world-altering law is published, new laws will take full effect in the European Union 27 nations.

Now, all EU national states must accept the updated laws, except for the U.K. which is heading for the EU exits.

MEP Judith Sargentini captured the essence of the motivating factors.

She complained that literally “billions of euros” in tax revenue disappear from national coffers. Sargentini refers to black market money going into dark holes of terrorism financing, money laundering, and also tax avoidance and evasion.

In turn, the question about who will enforce said laws is now relevant.

According to Sargentini, it will be the “duty of financial entities” to enforce due diligence. The EU will play chief executioner in the new anti-crime cabal. Furthermore, thanks to the consensus agreement of the European Council’s December deal, there will be a whole series of EU-wide punishments. God help the person or entity found guilty of money laundering in Europe now.

 

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