Home Business Central Banking New EU law to make ban on Crypto-related transactions impossible for Banks

New EU law to make ban on Crypto-related transactions impossible for Banks

The cryptocurrency business in the European Union is about to witness an improvement as the Fifth Anti-Money Laundering Directive (AMLD5) will soon be effected.

Under the AMLD5 directive, cryptocurrency-related companies will be regarded like any other business.

Even though the blockchain sector has always recognized regulation as a roadblock, this latest installment of anti-money laundering laws in the European Union could bring about a change to things.

Crypto to witness massive improvement

The AMLD5 categorizes all virtual assets and their providers as ‘obliged entities.’

The Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law in July 2018 but came alive on the 10th of January, 2020.

Forbes writer, Pawel Kuskowski, noted that this puts the cryptocurrency sector in the same legal category as banks, payment processors, gaming, and gambling-related services.

However, the AMLD5 goes further in boosting protections for the crypto space because banks will have to give concrete reasons for rejecting services to any customer.

This automatically means that more people will be willing to buy virtual assets without the bank interfering.

Although the AMLD5 is not totally centered on crypto, it gives them the chance to be placed in the midst of other popular sectors.

It also analyzes some of the questions crypto-related firms had with the new AML standards by the Financial Action Task Force last year.

EU sets sights on Blockchain

As far back as 2016, the European Union has been examining crypto and blockchain, as workshops have been organized and committees created, to scour the potential of blockchain.

Also, there have been demands for EU digital currency especially after Facebook unveiled it Libra in 2019.

European Union’s policies have paved the way for the blockchain industry even though it is not vigorously facilitating crypto.

The AMLD5 will, therefore, have a considerable effect on the European blockchain industry in the years to come.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...

Federal Reserve should produce a digital dollar, Giancarlo says

Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC) has said that the Federal Reserve should generate digital currency.

Coinbase suspends EOS activities due to degraded performance

Owing to Coinbase degraded performance experienced with EOS, the digital currency exchange firm announced via Twitter on Saturday that...