In 2018, 2 important events took place for the world of virtual currency and digital wallets. One of them is Directive № 5 in Malta. The Government of the island of Malta adopted 3 legal acts regulating the sandbox of the blockchain.
And in June, the EU Herald published the Fifth Money Laundering Directive, which deals with virtual currency.
HOW BETWEEN THE INTRODUCTION
The island of Malta continues to maintain the status of an innovator in the economic sphere and introduce bills aimed at the promotion and development of innovative technologies and services.
One of the first steps in this area was the approval of 3 bills affecting the entire structure of the digital currency world.
They are designed to regulate innovative technological services, virtual financial assets, to promote transparency of activities regarding cryptocurrency.
First of all, the bills touched the digital blockchain platform. To control and promote development, a special body was created – the Digital Innovation Agency.
The direct tasks of the MATs are to promote the development of innovative technological ideas and the registration of entities implementing innovative technologies and services.
The fact that the system is regulated by the state and has clear and transparent legislative acts has attracted large digital exchanges. Among them are Binance, OKEx and other, no less well-known companies.
HOW DOES THE 5 DIRECTIVE TELL AS TO MONEY LAUNDERING FOR LARGE COMPANIES
5 The Anti-Money Laundering Directive will affect virtual currency exchanges and virtual wallet providers, which become full-fledged legal entities with respect to the law on combating money laundering.
Despite its popularity, this industry is just beginning to emerge and spread.
Legal regulation of digital exchanges will lead to the strengthening of the positions of large companies at the state level, and will expand the activities regarding financial institutions.
But, in turn, it will require greater returns to meet specified standards. This can lead to loss of human resources or even business. However, those companies that can comply with the regulatory framework will reach a new level.
Regulatory obligations will apply to cryptocurrency exchanges and digital wallets, as well as all electronic convectors, through which crypto, such as bitcoin and peers, are exchanged for standard currency, and in reverse.
It should be noted that legislative norms are not enough to prevent money laundering using an electronic cryptocurrency convector.
An exchange between private individuals through peer-to-peer transactions remains uncontrolled. With the growing popularity of cryptocurrencies, such transactions are becoming more common.
But, in any case, this is the right step and movement in the right direction. Confirmation of this will be the legalization of gambling, which also occurred on the island of Malta. It was there that a comfortable environment was created for the development of companies owning a gambling business.
Moreover, their activities are strictly regulated, but this only contributes to their development and prosperity.
But there are countries with a high level of risk, the control of which will take place at a more stringent level. In such countries, stringent regulatory procedures will be introduced. Each client from such a country will be required to obtain a preliminary agreement on the activity.
At the same time, friendly states should also tighten the procedure for creating branches and subsidiaries from blacklisted countries. At the moment, there are no state regulatory legal acts of the member countries of the association.
But most likely a standard approach will be taken in relation to high-risk countries.
In addition, all EU member states are required to maintain a single central electronic database for individuals and legal entities with an open bank account or cell. Such a system will track and identify each owner.
Access to the register will be given to supervisory authorities, using which they will be able to fulfill their duties.
All member states of the European Union, based on the 5 Anti-Money Laundering Directive, will be able to tighten requirements as necessary and at their discretion.
Our highly qualified specialists at Eternity Law International will be happy to provide you with assistance in resolving this issue.