EC wants to trade virtual currency posing supervised Terrorism




The European Commission wants to adapt existing EU legislation so that platforms for the exchange of digital currencies come under the scrutiny of financial authorities. This should make it possible to identify suspicious transactions of terrorists.

The European Commission’s plans are outlined in an action plan that allows the financing of terrorism must be addressed. In it the Commission states that trade in virtual currency is currently not regulated and there are no procedures exist that can be reported suspicious transactions, as is the case with regular financial institutions. The Commission therefore proposes platforms for the exchange of digital currency, or virtual currency exchange platforms’, dropping under existing legislation.

This relates specifically to the fourth Money Laundering Directive and the Directive on payment services . This should make it possible to identify suspicious transactions by financial authorities supervise. Under the Money Laundering Directive, for example, mentioned specific financial service providers to report such suspicious transactions. In the Netherlands, the designated authority, the Financial Intelligence Unit , which is part of the police. If plans go ahead from the EC would also exchange services for virtual currency must comply with this notification requirement. There would still be examined whether wallet providers be brought include bitcoins within the scope of the legislation. There is no description available of the technical implementation of this plan.

The action plan is also reported that prepaid cards are a risk when it comes to financing of terrorism. Plans to mitigate this risk would have to take care of the EC tackling the anonymity of such cards, without affecting the normal use of the cards will be adversely affected. It would be thought of at this point to modify the identification requirements with the purchase of prepaid cards, but there are no concrete proposals yet. Trade in these cards is already within the scope of existing EU legislation.

In January, the European Commission still know that there would be no plans to regulate virtual currencies. Yet there with this plan seems to have made a first step in this direction. It is intended that the amendments to existing EU legislation are proposed at the end of the first half of this year.


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