EU Introduces Crypto Anti-Money Laundering Regulation

The First “Country” with a Clear Definition of a Virtual Currency

The amendment sets out the following definition:

Which Services Classify as “Exchanges”?

The amendment extends the scope of AML directive also to cover “providers engaged in exchange services between virtual currencies and fiat currencies.”

Which Services Classify as “custodian wallet providers”?

The amendment provides that:

What Does This Mean for Exchanges and Wallet Providers?

Quite a lot. In practice, they need to comply with all provisions of the AML directive, or with the pertaining regulation of their country of incorporation.

What Does This Mean for the ICOs?

At first glance it seems that nothing. But is this really the case?

Is EU the Place to be for Blockchain Ventures?

Yes! The European Commission is active in the space and has not done anything so far to hinder the development of the blockchain arena. The proposed amendment to the AML directive will in my opinion be warmly accepted by the industry. Already now, all reputable exchanges and wallet services providers identify their users and have AML policies in place. Complying with the new requirements will not be an issue for them. In addition, an important regulatory issue has now been cleared up and it is clear which activities need to comply with AML rules and which do not.



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Nejc Novak, LL.M. (UCL)

Nejc Novak, LL.M. (UCL)

A lawyer and a geek. Busy cracking the EU venture capital space. Founder of Nlaw.