According to the EU and UK officials, cryptocurrency market will most likely to be overseen by the authorities starting from early 2018. Will UK and EU cryptocurrency regulations affect traders?
5 December, AtoZForex – The United Kingdom along with the officials from other EU nations are considering a major crackdown on Bitcoin. The governments appear to be concerned about the cryptocurrencies’ usage for money laundering and tax evasion.
How will UK and EU cryptocurrency regulations affect traders?
Specifically, the Treasury considers regulating Bitcoin and other cryptocurrencies. The ultimate plan of the officials involves bringing the digital currencies in line with anti-money laundering and counter-terrorism financial regulations. In case the crackdown will be successful, cryptocurrency traders will need to disclose their identities, which wipes away one of the key advantages of Bitcoin trading – privacy.
Yet, desperate times call for desperate moves and particularly the anonymity is that what makes Bitcoin so attractive to criminals. In fact, there are numerous criminals that utilize the advantages of cryptocurrency trading for drug dealing and the like.
According to the EU cryptocurrency regulations plan, all online platforms trading Bitcoin will need to carry out due diligence on customers. They will also need to report suspicious transactions. It is known that the UK is in the process of negotiation in regards to the changes to the anti-money laundering directive. The government attempts to make sure that firms’ activities are regulated by the national authorities.
When will EU Cryptocurrency regulations apply?
In addition, the economic secretary to the Treasury, Stephen Barclay has shared the government’s plan earlier this October:
“The UK government is currently negotiating amendments to the anti-money-laundering directive that will bring virtual currency exchange platforms and custodian wallet providers into anti-money laundering and counter-terrorist financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas.
The government supports the intention behind these amendments. We expect these negotiations to conclude at EU level in late 2017 or early 2018.”
The new EU Cryptocurrency regulations are expected to come into effect in the near future – just some months. The Treasury has added that cryptocurrencies are also subject to be used to facilitate cybercrime. The officials added:
“There is little current evidence of them being used to launder money, though this risk is expected to grow.”
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