Bitcoin crackdown – “Today’s agreement will bring more transparency to improve the prevention of money laundering and to cut off terrorist financing” These were the words of the EU’s justice commissioner according to DW. Bitcoin has seen a lot of government concern this year ranging from Chinese and South Korean Ban on ICO’s to SEC ‘s warning on ICO scams. The EU has been rather more on the sideline regarding cryptocurrencies with little comment on the topic. On Friday, after almost a year of internal deliberation, in a bid to monitor and stop money laundering to terrorists, the EU’s Bitcoin crackdown finally came to light. This also just a few hours after a US pro-ISIS supporter was apprehended after trying to send $150 thousand worth of Bitcoins to ISIS in Syria as recorded by Cointelegraph.
Impact of the EU’s Bitcoin crackdown
Given the EU’s Bitcoin crackdown, new rules have been put in place which will give national governments more sight and control on how its activities are being carried out within the block. This includes;
- Limitations to the use of prepaid card for crypto-related activities
- Identification of users by exchanges and wallet providers
- National investigators are also given the upper hand to access information including does stored in banks
- It also raises transparency requirements for companies and tryst owners
Though this took more than a year for the EU to come up with this roadmap for Bitcoins’s regulation, it was EU Law marker in charge, Judith Sargentini aired this delay was due to some countries including Britain, Malta, Luxembourg, Cyprus, and Ireland opposed transparency on trust and companies as they feared could impact their economies negatively.
This is yet another unpleasant news for the Bitcoin society as this is yet one step closer to governments trying to centralize and control Bitcoin and its related activities something which challenges the core privacy principle of Bitcoin