European AML Regulations Follow the US Path With a Six-Years’ Delay
Cointelegraph By Serhii Mokhniev's original article for cointelegraph.com reduced by 71%
As the EU member states transpose the new directive into their national legislation, it will already be over half a decade since cryptocurrency regulation came into force in the U.S. What should we learn from this long-standing experience? And what should we expect from the regulation of the EU market as compared to the U.S.? Notably, EU member states are free to impose stricter anti-money laundering measures in their national legislation much like the U.S., where states are permitted to impose more stringent regulations as long as they do not conflict with U.S. federal law.
Crypto service providers obtain the status of "Obliged entities" under the Fifth Anti-Money Laundering Directive, or 5AMLD, in the EU, which is equal to "Covered financial institutions" in the U.S. - both definitions have the same purpose, which is to make crypto service providers comply with the established banking rules in each regulatory jurisdiction. Focus of regulation - 5AMLD covers custodian wallet service providers and crypto-to-fiat exchanges, while the U.S.
federal regulatory regime applies to providers exchanging or transmitting crypto regardless of fiat currency involvement. To date, no federal privacy or data collection regulation has been enacted in the U.S., although privacy laws have started to appear in some U.S. states.
To the contrary, many in the U.S. have speculated that states will soon follow suit and create a national database that tracks the beneficial ownership of entities. Cryptocurrency has been regulated in the U.S.
under existing money transmitter laws for six years now.
Donate Bitcoin to this address
Scan the QR code or copy the address below into your wallet to send Bitcoin
Donate Ethereum to this address
Scan the QR code or copy the address below into your wallet to send Ethereum
Donate With MetaMask
Donate ETH With MetaMask
Alternatively, support us by using the following referral links:
CN [too long; didn’t read]
Summarised crypto news.