EU seeks tighter control over cryptocurrency, virtual currencies

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The European Commission (EC) has introduced new proposals aimed to stop terrorists using virtual currencies. It must first be voted and agreed by EU member states before coming into force.

The proposals will impose tighter regulations on digital currency platforms such as Bitcoin to prevent their use to fund terrorist activities. The providers will be obliged to monitor transactions and users the same way banks do.

The measure is also aimed at money laundering and tax avoidance, bringing virtual currency exchanges under the EU’s Anti-Money Laundering Directive. Under the new restrictions, the EU will lower the non-reloadable prepaid card threshold to $167 (€150) from $276 (€250).

“Today, we are putting forward stricter transparency rules to cut terrorist financing and step up our fight against money laundering and tax avoidance,” said Vera Jourova, the EU’s Commissioner for Justice, Consumers and Gender Equality, stressing that the update of an existing directive will prevent any loopholes for criminals, terrorists or anyone trying to play with taxation laws to support their activities.View image on Twitter

Japan’s largest bank tests digital currency http://on.rt.com/7fkz 

EU member states will be required to provide a central register of information of all bank and payment account users for the authorities to have better access when they are suspected of illegal activity.

Australia to auction millions in confiscated bitcoinshttp://on.rt.com/7e39 

Photo published for RT InternationalOver $11 million worth of bitcoins confiscated last year as proceeds of crime are to be auctioned off in Australia.

“Today’s proposals will help national authorities track down people who hide their finances in order to commit crimes such as terrorism,’’ said European Commission Vice-President Frans Timmermans, adding that it was vitally important for the members to get and share information about company owners and pre-paid cards users.

3 COMMENTS

  1. Money launderers will NOT use BTC to wash their money into a bank account,as the Block chain methodology,is based on complete audit trail.

    Money launderers will use BTC to store cash,but that also comes with the risk of price reduction,and so a buy back contract will have to be executed,off market,to hold the price.So long as the keys are safe,the money is safe,and beyond the reach of the law.The concept of actual,nominal and beneficiary owne, does not exist in BTC – it is only the «KEYS» – and so,there is complete legal anonymity

    Next is the movement of cash.BTC will move 10 Million USD from the North to South Pole,in less than a second – which has no price risk,and this aids money launderers to move cash to safe harbours in offshore jurisdictions.

    BUT STILL the sale proceeds of the BTC,cannot be banked.Once it is banked,then FATF,KYC and AML of the banks will nail the inflows.

    So BTC will aid in storage and movement of cash – but the last leg of WASHING THE PROCEEDS OF THE BTC sale,will have to be done offline or in some offshore jurisdiction,where no questions are asked,about bank inflows

    There are several options,to wash the money at the last leg

    On the above principle,BTC can crash the costs and time in remittances,and also,force banks to be cost effective and efficient.This is a social service.

    BTC can be a stepping stone for Salvador to start an e-currency.dindooohindoo

  2. SALVADOR HAS ADOPTED BTC AND PEOPLE SAY Y ?

    If Salvadoreans have been stashing USD as a risk hedge – it is not good for the state – as this stash is in cash –
    and pressures the local exchange and has no productive use

    With BTC and the circulation of USD,if the USD cash starts circulating,it is good for the nation and the banks, and some of the USD will find its way into the banks,and be used for economic activity.

    People will take out their hidden USD,buy BTC and SPEND THE MONEY or SPEND THE APPRECIATION IN THE BTC OR THE PROFIT – and that is a gain for the nation.If the banks sell the BTC,then the PHYSICAL DOLLARS, WILL MOVE INTO THE BANK – AND THE NATION CAN USE THE USD,NOT TAKE IMF LOANS,AND THE PEOPLE WILL HAVE DIGITAL DOLLARS WHICH CANNOT BE STOLEN,BURNT,TORN,COUNTERFEITED OR DAMAGED.

    Boosting demand for a DIGITAL DOLLAR (BTC),is better than the PHYSICAL USD.

    Money laundering cannot happen with the BTC,as the person WHO SELLS THE BTC TO THE STATE,AND RECEIVES USD IN HIS BANK – will have a name and identity,and will need to explain the proceeds,as the date of his acquisition of the BTC,is known.

    Even if such a fool exists,he would be trapped by the state,with the BTC.

    The Govtt of Salvador,should commit that every Salavadorean,can surrender his BTC to the bank,and get USD,at any time.dindooohindoo

  3. SPEAKING OF PEOPLE WHO WOORY ABOUT THE CARBON PRINT OF BTC

    THE SOLUTION IS TO MINE BASED ON POWER FROM HYDRO, IN THOSE NATIONS,WHERE THE OPPORTUNITY COST OF POWER IS LOW, IN TERMS OF THE ECONOMIC OPPORTUNITY COST,FUSED WITH ENVIRONMENTAL COSTS

    SO A NATION WHICH HAS ALMOST FREE HYDRO POWER, IT CAN USE IT TO MAKE STEEL AND ALUMINIUM OR MINE BITCOIN ! WHAT WILL IT CHOOSE ?

    THE CHOICE IS CLEAR !

    THEN COMES GEO THERMAL ,SOLAR AND WIND ! IF A NATION HAS THESE SOURCES IN ABUNDANCE – BUT NO VIABLE MANUFACTURING OR EXPORT SECTOR – THEN WHAT TO DO ? MINE BITCOIN !

    THEN WE COME TO NATIONS WHEREIN COAL IS IN ABUNDANCE,BUT THERE ARE NO CEMENT OR POWER PLANTS. WHAT IS THE BEST USE ? BITCOIN !

    SO THE 1ST OPTION IS MINING BTC , AND THEN THE NEXT OPTION LIES IN HOSTING THE SERVERS ,WHICH HOST THE CRYPTO TRANNSACTIONS !

    FOR HYBRID OFFGRID RENEWABLES WITH DIESEL POWER BACK UP – WHICH ARE OFF THE GRID – THE «ONLY VIABLE USE» IS BTC ! AND THE SAME APPLIES TO BASE LOAD POWER PRODUCED BY IPPs – THAT SUPPLY CAN ONLY BE ABSORBED BY BTC AND ALSO LOWER THE POWER COSTS TO THE IPP !

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