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EU Commission unveils plan to deal with virtual currencies

Wednesday 3 February 2016 11:44 CET | News

The European Commissions has unveiled a new proposal according to which digital currency exchanges will be subject to tighter regulations and data gathering requirements.

The Commission is planning to bring virtual currency exchange platforms under the scope of the Fourth Anti-Money Laundering Directive, in order to help identify the users who trade in virtual currencies. In addition, the Commission will examine the possibility of applying the licensing and supervision rules of the Payment Services Directive (PSD) to virtual currency exchange platforms, as well as virtual wallet providers.

If digital currencies are brought under the Fourth Anti-Money Laundering Directive, exchanges will have to verify the identities and documents of their clients under the KYC rules.

The report also emphasized that virtual currencies are still a very small market and do not pose any material risk to the financial system. The Commission’s action plan also highlighted the usefulness of cryptocurrencies and why they have not been banned.


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Keywords: Bitcoin, mining, cryptocurrency, digital currency, online payments, online security, online transactions, EU, virtual currencies
Categories: DeFi & Crypto & Web3
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Countries: World
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DeFi & Crypto & Web3






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