The cryptocurrency market has attracted a lot of attention lately for its tendencies to help countries avoid sanctions amid the Russia-Ukraine conflict. In response to the invasion, the EU imposed harsh penalties, supported by those proposed by the US and UK. On the other hand, rumors that Russia will use cryptocurrencies cause nightmares in western countries. A recent article by EU institutions explores the use of cryptocurrencies on the block.
Regulatory report on cryptocurrencies from the European Union
In the sixty-page report, up to 80 adjustments are proposed for member states. It is worth noting that the EU is pro-crypto entities and is open to developments in ledger technology. According to research:
Co-reporters are a safe, legal and well-functioning space for cryptocurrency users and crypto service providers across the Union. Co-rapporteurs urge Member States and EU authorities to ensure appropriate enforcement and enforcement to prevent unfair and unregulated competition, including from non-EU players.
According to the article, law enforcement and regulators should cooperate to ensure proper use of cryptocurrency in the region. The EU aims to spread crypto regulatory thinking to the worldwide community as a major global economic bloc. Among the key notes is “change 30” explaining the crypto transfer. The following is taken from the report:
Transfer of cryptocurrencies means any transfer of cryptocurrencies from one wallet address or crypto account to another wallet address or account, through at least one crypto service provider or other obligatory entity acting on behalf of both parties. Regardless of whether the originator and beneficiary are the same person, and whether the originator is the same person as the crypto service provider and the beneficiary, it is considered a creator or beneficiary.
Notably, the economic bloc is keen on money laundering and the use of crypto to enable terrorism-related activities in the region. The text of the report on this subject includes:
Given the high risk of money laundering and terrorist financing posed by non-compliant crypto service providers providing full anonymity based services and not recognized by any jurisdiction or located in high-risk third countries for AML/CFT purposes, crypto service providers and other liable entities, avoid interacting with non-compliant crypto service providers.