New EU Law Will Make it Impossible for Banks to Ban Cryptocurrency-Related Trans

[yandabanda34]

The Fifth Anti-Money Laundering Directive (AMLD5) will soon go into effect and it will inadvertently boost the cryptocurrency industry in the EU. Under the new directive, cryptocurrency-related companies will be treated like any other business.

The blockchain sector has always seen regulation as the greatest roadblock. However, the latest installment of anti-money laundering laws in the European Union could change things.

The Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law in July 2018 and came into force on Jan 10 of this year. It groups all virtual assets and their providers as ‘obliged entities.’ According to Forbes writer Pawel Kuskowski, this places the cryptocurrency sector in the same legal category as banks, payment processors, gaming, and gambling-related services. In effect, this means that cryptocurrency-related businesses will be treated like any other.

However, the AMLD5 goes further in boosting protections for the cryptocurrency industry. Banks now have to provide valid, individual justification to refuse services to a particular customer. It cannot simply ban services with cryptocurrency-related payment processors or companies. This will mean that millions more will finally be able to purchase virtual assets without bank meddling.

What do you think about this? Also if you want to read the full article where i found the information, you can click on the link below.

https://beincrypto.com/new-eu-law-will-make-it-impossible-for-banks-to-ban-cryptocurrency-related-transactions/

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[rosezionjohn]

That's a positive way to spin the AMLD5 LOL. Banks based in EU won't need to ban crypto related transactions because they won't have difficulty getting information anymore.

Looking at it from a crypto enthusiasts who value privacy and anonymity perspective, it means giving more detailed personal information to exchanges, payment processors, gambling sites, and other services that handles cryptocurrencies.

For exchanges, it means more burden with the added reporting requirements.

The new rules require crypto exchanges and custodial service providers to register with their local regulator and demonstrate compliance with thoroughgoing know-your-customer (KYC) and anti-money laundering AML procedures.

https://www.coindesk.com/european-crypto-firms-brace-for-higher-costs-as-amld5-takes-effect

[masterrex]

In my opinion, it was another achievement of the cryptocurrency industry, and also gives more protection to the investors. but I don't know if this new regulation can bring the cryptocurrency industry into another level. If I am correct it may require to enforce stricter compliance to all cryptocurrency users, we must all remember that one of the many reasons why cryptocurrency was patronized till today because of its anonymity and privacy features so if the regulation was strictly enforced I'm sure that all of these features become useless.

[Cryptogiji]

The Fifth Anti-Money Laundering Directive (AMLD5) will soon go into effect and it will inadvertently boost the cryptocurrency industry in the EU. Under the new directive, cryptocurrency-related companies will be treated like any other business.

The blockchain sector has always seen regulation as the greatest roadblock. However, the latest installment of anti-money laundering laws in the European Union could change things.

The Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law in July 2018 and came into force on Jan 10 of this year. It groups all virtual assets and their providers as ‘obliged entities.’ According to Forbes writer Pawel Kuskowski, this places the cryptocurrency sector in the same legal category as banks, payment processors, gaming, and gambling-related services. In effect, this means that cryptocurrency-related businesses will be treated like any other.

However, the AMLD5 goes further in boosting protections for the cryptocurrency industry. Banks now have to provide valid, individual justification to refuse services to a particular customer. It cannot simply ban services with cryptocurrency-related payment processors or companies. This will mean that millions more will finally be able to purchase virtual assets without bank meddling.

What do you think about this? Also if you want to read the full article where i found the information, you can click on the link below.

https://beincrypto.com/new-eu-law-will-make-it-impossible-for-banks-to-ban-cryptocurrency-related-transactions/

Quite an interesting take, I honestly think that they would simply add laws damaging crypto, I don't think most governments like the idea of decentralised wealth that they cannot really control on a daily basis. I think bitcoin will change the world and we will see a new wave of very rich people connected to the crypto.

Good article though and I hope that the EU will clarify more.

[qazgroup]

I really like the fact that European Union seems to have the most progressive stance on crypto and all this revolutionary technology taking over the the traditional financial system i hope all other countries will be watching and they should also come up with pro crypto policies because crypto and blockchain tech is here to stay and cannot be stopped.

[BlackSnowWhite]

The Fifth Anti-Money Laundering Directive (AMLD5) will soon go into effect and it will inadvertently boost the cryptocurrency industry in the EU. Under the new directive, cryptocurrency-related companies will be treated like any other business.

The blockchain sector has always seen regulation as the greatest roadblock. However, the latest installment of anti-money laundering laws in the European Union could change things.

The Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law in July 2018 and came into force on Jan 10 of this year. It groups all virtual assets and their providers as ‘obliged entities.’ According to Forbes writer Pawel Kuskowski, this places the cryptocurrency sector in the same legal category as banks, payment processors, gaming, and gambling-related services. In effect, this means that cryptocurrency-related businesses will be treated like any other.

However, the AMLD5 goes further in boosting protections for the cryptocurrency industry. Banks now have to provide valid, individual justification to refuse services to a particular customer. It cannot simply ban services with cryptocurrency-related payment processors or companies. This will mean that millions more will finally be able to purchase virtual assets without bank meddling.

What do you think about this? Also if you want to read the full article where i found the information, you can click on the link below.

https://beincrypto.com/new-eu-law-will-make-it-impossible-for-banks-to-ban-cryptocurrency-related-transactions/

Cool post good read, Rome wasnt built in one day. Still easy days. For the population of the world very few in crypto.

[kindbtc]

Very encouraging news and i think all those countries who are still silent or are confused and in some cases have banned all crypto related businesses and services should study these policies and should come up with something similar otherwise they will be left behind, every country should move ahead now and innovation and technology that blockchain and crypto provides is matchless and countries who are still hesitant to accept this tech will left behind in dark ages.

[TravelMug]

Win-win situation for us, however, I will still be cautious though, too much information are to be given and that completely goes against crypto.

If crypto exchanges are going to be business entities, then it will likely ask a lot of personally information from us? Majority goes to crypto because of it's (pseudo) anonymity, but if we are going to exposed ourselves then it could shun away crypto enthusiast, just saying.

[Bttzed03]

Bitcoin was once "marketed" by some people as bank killer or something along those lines. But now, we see articles like this that praises laws/regulations that banks themselves were pushing for. Ironic isn't it?

Developers of bitcoin, ethereum, and even litecoin are talking about increasing privacy and yet here we are being happy about regulators mandating exchanges that we use to collect more personal data from us.

[tsaroz]

As they are treated like banks, payment processor and gambling site, they would also be regulated the same way. Regulation could be fruitful for companies trying to raise funds with crypto and investors aiming to invest in a legit place but would marginalize community based coins which are not in business model.

[alani123]

This is interesting to hear but as with many directives, countries can be very laxed into forcing entities in their own territory to enforce them.
With banks especially, I've personally witnessed many of them breaking GDPR daily and yet national authorities of many countries do absolutely nothing to stop the, while the liability and potential prosecution is still there for small businesses. It's crazy what banks can get away with.

[bitgolden]

I guess there is both a law that prevents you from not doing work because of prejudice but there is also a law that says you do not have to work with someone. I doubt banks would care in any regard since they are so big and vast that working with crypto could help them or hurt them and neither would be too big for them, they are big enough to not feel crypto companies they work with, it is like ants for them.

In the end it is nice for us at least, we would be capable of working with crypto companies knowing they are more legit thanks to this. With this I am sure there will be a huge crypto company in EU that works with euro and has deals with European banks (dunno if you guys have one big common bank) and get bigger than coinbase in the end and serve all of Europe.

[bttmember]

I still do not know why some countries and their governments have banned or declared cryptos as illegal where as every educated person knows that crypto currencies are the future and blockchain tech is the main revolutionary technology on which crypto is based and allowing official channels like banking to sale, purchase or transfer crypto will give governments more taxes and revenue that is why governments should encourage people to use official channels and let crypto grow.

[phoenixdowndee]

This is great news for all crypto projects based in the EU and citizens based there as well.

[ven7net]

The Fifth Anti-Money Laundering Directive (AMLD5) will soon go into effect and it will inadvertently boost the cryptocurrency industry in the EU. Under the new directive, cryptocurrency-related companies will be treated like any other business.

The blockchain sector has always seen regulation as the greatest roadblock. However, the latest installment of anti-money laundering laws in the European Union could change things.

The Fifth Anti-Money Laundering Directive (AMLD5) was officially signed into law in July 2018 and came into force on Jan 10 of this year. It groups all virtual assets and their providers as ‘obliged entities.’ According to Forbes writer Pawel Kuskowski, this places the cryptocurrency sector in the same legal category as banks, payment processors, gaming, and gambling-related services. In effect, this means that cryptocurrency-related businesses will be treated like any other.

However, the AMLD5 goes further in boosting protections for the cryptocurrency industry. Banks now have to provide valid, individual justification to refuse services to a particular customer. It cannot simply ban services with cryptocurrency-related payment processors or companies. This will mean that millions more will finally be able to purchase virtual assets without bank meddling.

What do you think about this? Also if you want to read the full article where i found the information, you can click on the link below.

https://beincrypto.com/new-eu-law-will-make-it-impossible-for-banks-to-ban-cryptocurrency-related-transactions/

For the crypto community and the crypto industry as a whole, this is of course very good news, but you still need to understand why the EC decided to make concessions for crypto. As far as I know in the EU, as in the USA, the situation is very poor. You may have heard of the recession. So, the EC, like the United States, is pumping up its economy with money that you yourself understand are especially worthless. All this leads to the fact that very soon an international economic crisis may occur, where countries and their money will collapse. Perhaps it is this EC directive that is the lifeline, not only for the EC itself, but in a sense the banks themselves. So we need to get ready for the fact that we will soon be swapping 1 - 2 years, there will be big changes in the financial sector in the world and cryptocurrencies will play their part in solving the problems that have arisen.

[Ozero]

Almost any regulation of cryptocurrency strengthens its position, since its circulation in society is fixed at the legislative level. However, the regulation of cryptocurrency by European Union authorities is distinguished by a reasonable and practical approach. I still like the position of the European Union regarding cryptocurrency. Not only banks, but also other states will be forced to take similar actions and consolidate a similar cryptocurrency status.

[jimsteel]

Interesting take, only time will tell if this is correct.

I think the banks etc will not let this happen too easily.

[Febo]

Interesting take, only time will tell if this is correct.

I think the banks etc will not let this happen too easily.

They can still not proceed transactions, but by doing that they will rich being sued and pay large fines. I dont think any for profit organisation will chose this way.

[forexandcryptoauditor]

In terms of cryptocurrencies business this is great news. However, governments should work on avoiding money laundering cases. Making KYC compulsory for all exchanges operating in their region could do something. KYC and AML should be top priority for exchanges also.

[Flux0z]

In terms of cryptocurrencies business this is great news. However, governments should work on avoiding money laundering cases. Making KYC compulsory for all exchanges operating in their region could do something. KYC and AML should be top priority for exchanges also.

Decentralized exchanges such as Stakenet's upcoming Lightning Network supported DEX will give MASSIVE competition to centralized exchanges out there, since by trading over LN, you can do it instantly, and with incredibly low fees.
It's trustless, can't be shut down by anyone, and is 100% safe to use. Doesn't require KYC, accounts, or anything else.

Below is a screenshot. It's a built in DEX to their multi currency wallet, with 1-click Lightning Swaps. 2 world's first. Pretty excited about it!