Follow us on or join ours

There are many indications that a new EU regulation will soon enter into force, which will support activities aimed at laundering money in cryptocurrencies. The MiCA directive does not seem to guarantee sufficient safety in this area.

Safe cryptocurrency trading

In March, the European Parliament approved the MiCA regulation, which is to be the first regulation of the EU cryptocurrency market. Although it is still difficult to assess how this document will work in practice, further actions are already planned to counteract the criminal use of cryptocurrencies.

The European Parliament, in cooperation with the European Council, has developed a bill to increase the security of digital money transactions. This act is to ensure the possibility of tracking cryptocurrency transfers and blocking transactions that raise doubts. This law would complement the MiCA Directive, which devotes too little attention to safety issues.
Principle "travel rule"

The activities carried out at the EU level, in accordance with the official position of the European Parliament, are intended to transfer the principle known as the "travel rule" applicable in traditional finance, also to cryptocurrency transfers. It states that information about the sources of the asset and its beneficiary will "travel" with the transaction and will be stored on each party to the transfer. Cryptocurrency service providers will be required to make this data available to the relevant services in the event of any irregularities related to the financial turnover.

Counteracting financial crimes in Europe

It also seems justified that the regulation should also cover the so-called unhosted wallets, meaning those wallets that are not related to traditional centralized exchanges or brokers. It is worth adding that such a postulate was rejected some time ago by the British authorities, not allowing the tracking of these wallets.

Meanwhile, the new EU regulation governing the transfer of funds is aimed at implementing the relevant requirements on cryptocurrency transfers. At the same time, entities offering related services will be obliged to collect and share their clients' data, if necessary.
All these activities are intended to make cryptocurrency transactions more secure, and at the same time to reduce the scale of fraud and money laundering.

5 / 5 - (5 votes)
We invite you to visit our other portals, and is a cryptocurrency site run by a crypto team of enthusiasts. The main area of ​​our interest are cryptocurrencies, tokens, personal tokens as well as blockchain technology. On the pages of our website we will present independent cryptocurrency reviews and interesting articles from the market. In addition, we present the current rates of all critics. The site also has a multi-functional cryptocurrency calculator as well as traditional currencies.

The information published on the cryptocurrency website are not financial recommendations and do not constitute investment recommendations within the meaning of the Regulation of the Minister of Finance of 19 October 2005 on information being recommendations regarding financial instruments, their issuers or issuers (Journal of Laws of 2005, No. 206, item 1715). The information published on the pages of the portal does not constitute an offer. is not responsible for any decisions taken under the influence of data presented on the Website. Portal does not bear any responsibility for the possible use of information on the website.

Investments in OTC market instruments, including currency exchange rate (CFD) contracts, due to the use of the leverage mechanism, entail the possibility of incurring losses exceeding the value of the deposit. It is not possible to make a profit on transactions on OTC instruments, including currency exchange contracts (CFDs) without risking a loss, therefore contracts for exchange differences (CFDs) may not be suitable for all investors.

© Copyright 2019

My Newsletter

Sign Up For Updates & Newsletters