New EU directive may impose AML regulations on bitcoin wallet providers

posted over 4 years ago
The European Commission published a new directive draft last week proposing to extend strict anti-money laundering (AML) regulation to both virtual currency exchange services and custodial wallet providers.

The proposal, which particularly focuses on terrorist financing, intends to restrict the anonymous use of virtual currencies, presumably referring to bitcoin and altcoins.

In new directive the European Commission recommends that existing anti-money laundering regulation should apply to virtual currency services, and, in particular, to exchanges and custodial wallet providers.

If adopted, many Bitcoin companies in the E.U. will be required to collect their customers’ identity documents. Additionally, Bitcoin companies will need to monitor transactions on their platforms and report suspicious activity.
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