this is what every country will do

[samdan777712]

Lithuania is preparing new rules to govern cryptocurrency transactions, requiring businesses to prove the identity of clients, local daily news outlet Delfi reported on June 12.

As part of its obligations to impose European Union anti-money laundering (AML) regulations, Lithuania’s finance ministry will seek to completely formalize crypto-based exchange operations.

Parliament approved the move during a sitting on Wednesday, Delfi says, while a time frame remains uncertain for implementation.

Once the rules come into effect, any transactions worth over €1,000 ($1,127) involving cryptocurrency — be it into or out of fiat or from one cryptocurrency to another — will face stringent reporting requirements.

Exchanges or similar businesses will have to gather identity information about the buyer, while large operations over €15,000 ($16,919) will oblige them to inform Lithuania’s Financial Crime Investigation Service.

https://cointelegraph.com/news/lithuania-to-regulate-cryptocurrency-exchange-sector-with-obligatory-id-checks

[Furious 7]

I think this is anticipation so that fraud and money laundering cases can be detected easily. I think it is important to provide security to every user of financial services and protect citizens.
maybe this is also part of the tax strategy, and every country has a different policy.

[Payme21]

A very good development because fraudulent people are already taking advantage of this system and are getting away with it without notice

[Leh-Meh]

A very good development because fraudulent people are already taking advantage of this system and are getting away with it without notice

When Bitcoin is under law it will be digital asset just like Silver which regulated by law. Silver was $80/ounce in 1980.

[mazdafunsun]

I have noticed that Lithuania has very active cryptocurrency culture, many online shops accept cryptos as payments.
Lithuania at least at the time of ICO hype was very active in doing ICOs also.

But I dont know why they want also check every transaction over 1000 Euros, it seems harsh .

I like that they are thinking of implementing rules for exchanges. My hope is that those rules will different form existing security laws.

[casperBGD]

it is good to have regulation on the market, it will help to increase security for all participants
if you use crypto because it is transparent and immutable, i do not see why it is problem to be regulated and publicly accepted

[dothebeats]

Hmm, I wonder if this covers your banking details so as to ensure that you have the means to carry such weight into your account? Local exchanges here (Philippines) imposed that sometime last year for accounts exceeding volumes of $10,000 monthly which, I think is also a bit off. I have received that notification after converting $10,000 worth of bitcoins to local cash and have been summoned to their HQ for some clarifications and questions. Idk why but since then, I never used the exchange, and have since moved on to P2P transactions if I want fast cash or btc.

[Yakamoto]

I have noticed that Lithuania has very active cryptocurrency culture, many online shops accept cryptos as payments.
Lithuania at least at the time of ICO hype was very active in doing ICOs also.

But I dont know why they want also check every transaction over 1000 Euros, it seems harsh .

I like that they are thinking of implementing rules for exchanges. My hope is that those rules will different form existing security laws.

I'm thinking that the choice to report every transaction over the 1000 Euro threshold isn't one that's been supported by Lithuania. Based on the other statements and related legislation that they have to deal with in the EU, I'm betting that they're being coerced to do this. Likely because they would face financial penalties or sanctions against their domestic financial institutions if they didn't comply. Cryptos seem like they were included as a side thought to this anti-money laundering legislation. Of course, you have to ask yourself how effective this is actually going to end up being. Considering that you can almost make cryptos appear completely stateless during a transaction, this is probably going to hurt legitimate users more than it will hurt criminals. All they have to do is some transaction splitting, through crypto or otherwise, and they'll (probably) fly under the radar.

Being from a country that has the transaction reporting limit closer towards $10,000 rather than $1,000 (and that's cash only), I don't see how they wouldn't get swamped with excessive reports. $1,000 isn't a huge amount of money. Lots of things are starting to cost around that range and beyond (computers, phones, bikes, etc.). Cryptos can easily see a few dozen transactions worth in excess of $10,000 USD within a minute or two. I don't understand how they chose the arbitrary $1,000 limit, but it doesn't seem like a smart choice.

[sunsilk]

It's normal to impose reporting requirements if the amount seems to be high base on their standards. This happens almost everywhere as we are all using exchanges that imposes KYC if your transaction is higher than a normal user does. Take into consideration with the withdrawal limit without KYC, it isn't that much.

Lithuania is getting ready for this which is really a good news.

[ityandsyn]

Lithuania is preparing new rules to govern cryptocurrency transactions, requiring businesses to prove the identity of clients, local daily news outlet Delfi reported on June 12.

As part of its obligations to impose European Union anti-money laundering (AML) regulations, Lithuania’s finance ministry will seek to completely formalize crypto-based exchange operations.

Parliament approved the move during a sitting on Wednesday, Delfi says, while a time frame remains uncertain for implementation.

Once the rules come into effect, any transactions worth over €1,000 ($1,127) involving cryptocurrency — be it into or out of fiat or from one cryptocurrency to another — will face stringent reporting requirements.

Exchanges or similar businesses will have to gather identity information about the buyer, while large operations over €15,000 ($16,919) will oblige them to inform Lithuania’s Financial Crime Investigation Service.

https://cointelegraph.com/news/lithuania-to-regulate-cryptocurrency-exchange-sector-with-obligatory-id-checks

      It seems government wants to have full control of their crypto currency to avoid some sort of fraudulent  ,money laundering and maybe to avoid misuse of it like drug syndicate and terrorist activity so this is also a good move for a government to crypto currency .
      

[squatter]

I think this is anticipation so that fraud and money laundering cases can be detected easily. I think it is important to provide security to every user of financial services and protect citizens.
maybe this is also part of the tax strategy, and every country has a different policy.

This is obviously in response to the upcoming FATF rules. The rules specify a $1,000 or €1,000 threshold which triggers stringent KYC requirements on both sender and receiver. That's why the Lithuanian regulations set a €1,000 threshold for reporting. The OP is probably correct that most countries will do the same thing in the near future.

[Cacingkemi]

If this regulation is applied in every country I think it will not be good, even though its for good but someone who will thinks about the uniqueness of crypto itself from year to year we are always free to exchange without even KYC.
Since there is KYC and the price of BTC rising news about government regulations is always at there and that IMO will not be good for this industry. Money laundering or fraud reasons that I don't think are reasonable cause money laundering and fraud often occur without using crypto as well, regulations that will make crypto equal to other assets I think we will be shackled. "Notify me if I'm wrong"

[avikz]

Lithuania is preparing new rules to govern cryptocurrency transactions, requiring businesses to prove the identity of clients, local daily news outlet Delfi reported on June 12.

As part of its obligations to impose European Union anti-money laundering (AML) regulations, Lithuania’s finance ministry will seek to completely formalize crypto-based exchange operations.

Parliament approved the move during a sitting on Wednesday, Delfi says, while a time frame remains uncertain for implementation.

Once the rules come into effect, any transactions worth over €1,000 ($1,127) involving cryptocurrency — be it into or out of fiat or from one cryptocurrency to another — will face stringent reporting requirements.

Exchanges or similar businesses will have to gather identity information about the buyer, while large operations over €15,000 ($16,919) will oblige them to inform Lithuania’s Financial Crime Investigation Service.

https://cointelegraph.com/news/lithuania-to-regulate-cryptocurrency-exchange-sector-with-obligatory-id-checks

AML is one framework that every country will have to oblige! No exceptions should be given! While I am not against the crypto circulation among the masses, but we will also have to ensure that such transactions are not helping terrorism or any other illegal activities! Bitcoin has already earned a bad reputation due to its involvement with Silk road, NZ terrorist attack and many other! It's our job to ensure that such things don't happen again! Regulation exactly means that!

[Artemis3]

All you have to do is stick to crypto, avoid the exchanges. Pay and be paid in crypto directly. Bitcoin cannot help you if you insist in exchanging it for fiat, thats where governments and institutions mess things.

[pooya87]

Lithuania is preparing new rules to govern [blank] transactions, requiring businesses to prove the identity of clients,

Once the rules come into effect, any transactions worth over €1,000 ($1,127) involving [blank]— be it into or out of fiat or from one [blank] to another — will face stringent reporting requirements.

[blank] or similar businesses will have to gather identity information about the buyer, while large operations over €15,000 ($16,919) will oblige them to inform Lithuania’s Financial Crime Investigation Service.

remove cryptocurrency and bitcoin from this news (i placed [blank] in their place) and you can see this is not new for any country. this has been going on for as long as Anti Money Laundry laws existed. the law forces businesses to report any money transfer that is higher than a certain value specially when it is a place of trading like an exchange where money keeps going in and out with large volumes.

[squatter]

Lithuania is preparing new rules to govern [blank] transactions, requiring businesses to prove the identity of clients,

Once the rules come into effect, any transactions worth over €1,000 ($1,127) involving [blank]— be it into or out of fiat or from one [blank] to another — will face stringent reporting requirements.

[blank] or similar businesses will have to gather identity information about the buyer, while large operations over €15,000 ($16,919) will oblige them to inform Lithuania’s Financial Crime Investigation Service.

remove cryptocurrency and bitcoin from this news (i placed [blank] in their place) and you can see this is not new for any country. this has been going on for as long as Anti Money Laundry laws existed.

It was always the norm to treat money transmission -- like fiat wire transfers to and from exchanges -- that way. It was never the norm to treat trading and cryptocurrency transactions which don't involve fiat that way. The €1,000 threshold is also by far the lowest AML threshold I've ever seen in any law before.

Clearly, KYC and reporting requirements vis-a-vis cryptocurrency are being drastically expanded. These standards are not being equally applied to other forms of payment, so we can't just write it off as "the same old AML laws as always."

[nicolaz.zhu]

The country is like my country, the government still cannot accept the existence of cryptocurrency, because banks will be very difficult to track how many of our assets, and for citizens themselves must regularly report taxes every year.

[malevolent]

Statists gonna state  

Those who are excited at the upcoming regulations in other countries following FATF recommendations would do well to acquaint themselves with said recommendations...

[elisnrj]

Related to the potential of Bitcoin trading and its impact on the economy going forward.
Extreme price volatility, along with routine theft from the exchange, has irritated regulators. In the absence of global rules, countries have taken a contrasting route to tame this sector.Last year, Japan became the first country to regulate digital currency exchange, while China and South Korea pressed them. In Europe, several countries including France, Switzerland and Malta are planning early-stage supervision by arranging initial coin offers. or an initial coin offering (ICO).

[michellee]

All you have to do is stick to crypto, avoid the exchanges. Pay and be paid in crypto directly. Bitcoin cannot help you if you insist in exchanging it for fiat, thats where governments and institutions mess things.

But we cannot deny the exchanges that will help us to make more money or profit. So far, many of us still trade in many exchanges, and many of them are making a profit from trading. We cannot use bitcoin in all country, and we need to exchange bitcoins with fiat so we can use fiat to buy something or pay something. But in the future, when bitcoin has already accepted in all countries, then we can use bitcoin only to buy something.