Business 4 January 2019

Erik Gibbs

Ireland set to approve AML bill impacting cryptocurrencies

A new directive, established by the European Union (EU), has been accepted by Ireland’s Cabinet according to a report by the Irish Times. The legislation establishes criteria for financial watchdogs across Europe to monitor and regulate cryptocurrencies for activity related to money laundering and terrorism financing and was put in motion by the EU in July of last year.

The directive, the Fifth Anti-Money Laundering (AML) Directive, was updated to include crypto platforms and wallet developers and to disallow anonymity in bank and savings accounts. It was also created to enhance communications capabilities and information exchange between authorities and is required to be incorporated into national laws in respective EU countries by January 20 of next year.

In approving the directive, Ireland established the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019 and created tougher language for existing language related to financial oversight. It now includes, among other aspects, the use of “virtual currencies for terrorist financing and limiting the use of prepaid cards.”

Ireland’s Minister of Justice, Charlie Flanagan, explained, “The reality is that money laundering is a crime that helps serious criminals and terrorists to function, destroying lives in the process … Criminals seek to exploit the EU’s open borders and EU-wide measures are vital for that reason. Ireland strongly supports the provisions in the fifth EU money laundering directive.”

The bill still needs to be approved by the country’s full government. If that approval is given, financial institutions in Ireland will be obligated to conduct additional due diligence on new customers and might prevent anonymous safe deposit boxes from being issued. The bill also gives the Garda and the Criminal Assets Bureau the authority to access bank accounts and records during investigations related to money laundering.

The EU is pushing forward with crypto regulations to help ensure the space can evolve in a logical manner. It has created several workgroups to formulate policies and the EU Blockchain Observatory and Forum last month submitted a report stating that digital versions of national currencies that are launched on a blockchain have great potential. The group asserted, “Putting digital versions of national currencies on the blockchain means they could then become integral parts of smart contracts. That would unlock much of the potential innovation of blockchain by allowing parties to create automated agreements, including direct transactions in these currencies, instead of having to use a cryptocurrency as a proxy.”

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

COMMENT

latest news

HitBTC claps back at claims it is insolvent

Business 1 hour ago

HitBTC claps back at claims it is insolvent

The HitBTC cryptocurrency exchange has had to deal with a backlash after it froze accounts over fears of a mass exodus and was then accused by John McAfee and Bitcoin Private.

Read More
A growing number of NFL players want to be paid in crypto

Business 1 hour ago

A growing number of NFL players want to be paid in crypto

If this were to happen, with the power they possess to sway public opinion, it could be bigger news for the Bitcoin ecosystem than AT&T accepting crypto.

Read More
Shades of black and the future of Bitcoin

Business 1 hour ago

Shades of black and the future of Bitcoin

Bitcoin can do something that the world desperately needs – it can help promote a better society.

Read More
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]
[data-clipboard-demo]