The European regulatory authorities has taken an important step in the confirmation of bitcoin users
The Council approved the Commission on regulating the exchange and wallet provider plan; this within the EU bitcoin industry regulation is a very important step.
In the world there is no sign that any terrorists have used encryption currency. But this does not prevent the European politicians made more stringent bitcoin regulatory proposals in every time after the terrorist attacks.
According to a plan of action to combat terrorism financing, at the beginning of 2016 EU legislation decided to use virtual currency according to the European anti money laundering rules. In late December, shortly after the terrorist attacks on the German Christmas market, the European Council agreed to strengthen its negotiating position, the control of money flows, including strict control of virtual currency business.
In December 20th, the Council confirmed the Commission’s draft, modify, and request the presidency of the European Union and the Council of the upcoming negotiations. The Council agreed to the proposed anti money laundering rules, and additional control. “After a series of terrorist attacks in Europe, it is necessary to seek the basic rights, protection of economic freedom and necessity to increase the security of balance.
In addition, the Council also recommended that the identification of prepaid card holders to lower the threshold to 50 euros, and expand the verification requirements. In addition, it hopes to “virtual currency exchange platform and hosting wallet providers should apply to customer due diligence (CDD) control mechanism, anonymous communication and termination of such transactions”. (Note: CDD customer due diligence refers to the financial institutions in establishing business relations with customers or their transactions, should be based on the legal valid identity certificate or other proof of identity to confirm the true identity of the customer, at the same time, understand the customer’s occupation or business background, purpose of the transaction, the nature of the transaction as well as sources of funding.)
Negotiation is the core of the draft EU anti money laundering, tax evasion and terrorist financing plan. It is proposed to include bitcoin virtual currency, the EU industry specification and a set of rules.
As part of a terrorist financing action plan, the European Commission announced in July 2016 will introduce a “virtual currency exchange platform and hosting wallet providers under the anti money laundering directive”. Therefore, bitcoin will be classified to fourth instructions and some anti money laundering laws and regulations, to the flow of money against unnecessary.
Fourth directives have been issued on May 2015, and must be performed before June 2017 by members of the European union. The rule will limit cash payment of 7500 euros, and defines the application must prevent any unnecessary currency entity: they must verify the identity of the customer, observe the money flow and provide information to the police suspicious transactions. Bitcoin and other means of payment will be classified in the instruction and as part of the European Union’s anti terrorism action plan.
Although the majority of European bitcoin exchange has been largely abide by these rules, but the committee’s plan also extended to the wallet provider. A press officer for the members of the Committee explained that each “virtual currency keeper and wallet provider” should be subject to regulation, this has nothing to do with customers holding electronic currency amount or type. Hold a private key, hold any entity or part of a group key exchange for any other signed certificate, will belong to this definition, and will be responsible for the prevention of money laundering.
Technically, multi signature wallet like Copay or GreenAddress providers may be subject to regulation, in addition, any Altcoin exchange or any user holds bitcoin platform, is likely to be a speculation or platform provider payment channels. However, unregulated may be similar to blockchain.info’s wallet, and do not need to hold the user’s private key or infrastructure providers, such as hardware manufacturers such as wallet. In addition, the tap and mining pool should not be restricted, because they do not retain the user’s funds.
The Council confirmed that the proposal is an important step forward. The next stage only after discussion and approval of Parliament to become law. If this, EU Member States will likely need to be monitored in June 26, 2017 before the bitcoin industry.
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