European Parliament votes for crypto regulations, requiring cryptocurrency trading platforms and wallet providers to have valid registration in place. The final vote has shown 574 in favor, with 13 opposed, and 60 abstentions.
23 April, AtoZ Markets – The European Parliament has voted in favor of cryptocurrency regulations, which would be aimed at preventing cryptocurrency money laundering and terrorism financing.
European Parliament Votes for Crypto Regulations
Earlier last week, members of the European Parliament have approved a December agreement with the European Council. The agreement is calling for “closer regulation of virtual currencies, like Bitcoin, to prevent them being used for money laundering and terrorism financing.” The final vote has shown 574 in favor, with 13 opposed, and 60 abstentions.
An official release of the case reads:
“In a bid to end the anonymity associated with virtual currencies, virtual currency exchange platforms and custodian wallet providers will, like banks, have to apply customer due diligence controls, including customer verification requirements.”
Additionally, cryptocurrency trading platforms and wallet providers will be required to have valid registration in place. The Parliament has also backed the measures to provide access to the data about the real owners of firms and incorporated “protection for whistleblowers who report money laundering (including the right to anonymity).”
European Commission on Crypto Regulations
In relation to the matter, a Latvian MEP Krišjānis KARIŅŠ has stated:
“This legislation helps address the threats to our citizens and the financial sector by allowing greater access to the information about the people behind firms and by tightening rules regulating virtual currencies and anonymous prepaid cards.”
Following on this, the European Commission has issued an 18-page long Fintech action plan earlier last month. The plan has considered the regulations in regards to the cryptocurrency assets. It also addressed the licensing procedure for the crowdfunding platforms, or Initial Con Offerings (ICOs). Moreover, the EC has looked into the potential regulatory framework related to the Blockchain technology.
During the roundtable talks, the European Commission Vice President Valdis Dombrovskis has stated that the development of the rules for cryptocurrency market might commence in the upcoming months. He has also suggested that the EU leaders might seek additional monitoring.
However, he has stated that such a result “depends very much on the facts and circumstance around specific crypto-tokens.” Moreover, the Commission might need to do more work in regards to this matter.
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