Cryptocurrency Money Laundering Rules Hidden Effects

In June 2018, the European Parliament and the Council announced the updated Anti-Money Laundering Directive. Known as AMLD5, the deadline for its implementation is January 2020, for less than a year.

Under the new rules, all cryptographic exchanges and caretakers operating in Europe will have to undertake strict KYC procedures and have to register with local authorities. They will also have to keep track of transactions and report any suspicious activity to the competent authorities.

Also, national bodies, including taxation, will be able to obtain cryptographic information about users from relevant wireline centers.

Concerns about inadmissible transfers are not limited to Europe. Last week, Bittrex, an American encryption base, deprived BitLicense license for failures in the KYC and AML integration processes (which the exchange had discarded).

In a wider scope last December, G20 leaders reiterated their commitment to developing comprehensive rules to prevent money laundering for cryptocurrency property. It is expected that the Financial Action Task Force (FATF), an intergovernmental body founded in 1989 to combat money laundering, will publish guidelines and targets for the implementation of cryptographic exchanges by June this year in the world.