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EU TACKLES VIRTUAL CURRENCY MONEY LAUNDERING RISK

19 December 2017

European Union states and legislators have agreed stricter rules to prevent money laundering and terrorism financing involving virtual currencies.

The agreement is part of a broader set of measures to tackle financial crimes and tax evasion. It will end anonymous transactions on virtual currency platforms and with pre-paid payment cards.

Bitcoin exchange platforms and “wallet” providers that hold the cyber currency for clients will be required to identify their users, under new rules which now must be formally adopted by EU states and become national law within 18 months.

The EU’s response was required. Virtual currencies are an emerging business area and, like many new trading opportunities, they offer the potential for business crime.

Whether the EU approach is strict enough remains to be seen. But it is important that everyone in business who is contemplating using virtual currencies is fully aware of the risks. This is something that we have been keen to publicise.

Read our article: BITCOIN AND DIGITAL FRAUD