What The 5th Anti-Money Laundering Directive Means For Crypto Businesses
Cointelegraph By Rachel Wolfson's original article for cointelegraph.com reduced by 80%
For the first time, 5AMLD is broadening its regulatory scope by including crypto service providers like virtual-fiat exchanges or custodian wallet providers. The rationale is that doing so pushes back against money laundering and terrorism financing. Increase transparency about who really owns legal entities in order to to prevent money laundering and terrorist financing via opaque structures.
Improve the cooperation and exchange of information between anti-money laundering supervisors and with the European Central Bank.broaden the criteria for assessing high-risk third countries and ensure a high level of safeguards for money moving to or from such countries. Crypto businesses can't keep their doors open long if they have to pay 5AMLD noncompliance fines. European crypto companies are struggling to meet the new regulatory guidelines presented by 5AMLD.
A number of businesses are shutting down due to the extensive know-your-customer and anti-money laundering practices the new law calls for. The UK-based crypto wallet provider Bottle Pay announced its decision to cease operations at the end of last year.
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Summarised crypto news.