The european Union is putting in place arrangements to reduce the anonymity of the users crypto

The Council of the EU has adopted a directive affecting the sector of crypto-currencies in Europe. This measure updates the anti-money laundering legislation of the european Union to address, among other things, risks related to crypto-currencies. The new rules aim to reduce the anonymity of users and transactions for the digital currency. The platforms for exchange of crypto-currencies are going to have to implement them. In parallel, a top official of the european central Bank (ECB) has called to differentiate the activities in crypto and traditional financial activities.

Check out below the details of this announcement in English :

Authorities to monitor the market of crypto-currencies

The main objective of the changes adopted in the framework of an action plan, launched after the terrorist attacks in Europe in 2016 is to strengthen the EU’s rules to prevent money laundering and the financing of terrorism. The amendments were adopted at a meeting of the Council of the EU on Monday. This decision follows an agreement reached with the european Parliament in December 2017. In April this year, meps voted to support the agreement to control the crypto-currency.

Source : Pixabay. The european Union has adopted a directive to monitor the trading of crypto-currencies.

The main changes involve addressing the risks associated with virtual currency. Measures will be taken to reduce the anonymity of the investors in crypto. According to this document, the service providers of exchanges will be required to identify suspicious activities. It stipulates that the authorities should be able to monitor the use of crypto-currencies across these platforms.

Definition of crypto-currencies

The Council of the EU has been keen to differentiate between crypto-currencies and electronic currencies. This directive stresses that, even if the crypto-currencies can be used as a means of payment, they could be used for other purposes and find wider applications.

A definition of the crypto-currency has been provided. They have been designated as a digital representation of value that is not issued or guaranteed by a governmental authority or a central bank. They are also not considered a currency legally established and do not have legal status.

Source : NewsBitcoin