The cryptocurrency market has gotten a lot of attention lately for its tendencies to help countries avoid sanctions amid the Russia-Ukraine conflict. In response to the invasion, the EU imposed harsh punishments, supported by those proposed by the US and UK. On the other hand, rumors that Russia will use cryptocurrencies cause nightmares in western countries. A recent article by EU institutions explores the use of cryptocurrencies on the block. As Kriptokoin.com, we are citing the highlights of the report…
Regulatory report from the European Union on cryptocurrencies
Up to 80 adjustments have been proposed for member countries in the sixty-page report. It is worth noting that the EU is pro-crypto entities and is open to developments in ledger technology. According to the research:
Co-rapporteurs are a safe, legal and well-functioning space for crypto users and crypto service providers across the Union. Co-rapporteurs urge Member States and EU authorities to ensure appropriate enforcement and enforcement to prevent unfair and unregulated competition, including from non-EU players.
According to the article, law enforcement and regulators should cooperate to guarantee the proper use of cryptocurrency in the region. The EU aims to spread crypto regulatory thinking to the worldwide community as a major global economic bloc. Among the key notes is amendment 30 announcing the transfer of crypto. The following is excerpted from the report:
Any transfer of cryptocurrencies from one wallet address or crypto account to another wallet address or account, through at least one crypto service provider or other obligatory entity acting on behalf of both parties means transfer. Creator or beneficiary, regardless of whether the creator and beneficiary are the same person, and whether the creator is the same person as the crypto-asset service provider and the beneficiary.
Money laundering
One notable point, the economic bloc is keen on money laundering and the use of crypto to enable terrorist-related activities in the region. The text in the report on this subject includes:
High anti-money laundering by non-compliant cryptocurrency service providers that provide full anonymity based services and are not recognized by any jurisdiction or are located in high-risk third countries for AML/CFT purposes. Given the risk of terrorism financing, crypto service providers and other liable entities should avoid interacting with non-compliant crypto service providers.
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