Nasdaq: Dutch bitcoin companies start initiative to adjust proposed EU AML directive

posted over 3 years ago
The European Commission published a draft directive last week proposing to amend existing AML rules to include virtual currencies such as bitcoin. If adopted, exchanges as well as custodial wallet providers will need to collect customers' identity documents and report suspicious activity on their platform to relevant authorities.

In an attempt to avoid regulatory overreach, a group of Dutch Bitcoin startups and experts is now reaching out to the Dutch Ministry of Finance offering their expertise, hoping to potentially adjust the proposed directive amendment.

Uncertainty still exists over the extent of the proposed directive; in particular over what are considered "wallet providers offering custodial services of credentials necessary to access virtual currencies."

Some legal experts maintain that the amendment would concern only companies that fully control customer funds. Other legal experts think it may also apply to wallet providers that merely hold onto a single key of a multisig-address. Additionally, Bitcoin-services that are not really designed as wallets but do hold private keys, may fall under the new regulation as well.

If the directive is adopted without sufficient provisions for startups and room for innovation, it will stifle Bitcoin innovation - or drive that same innovation out of the European Union.
Tags: bitcoin, news