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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.


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