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EU places crypto market in the same legal category as banks and payment processors

An Irish politician has called for stronger measures to be taken to regulate cryptocurrencies in the European Union.
An Irish politician has called for stronger measures to be taken to regulate cryptocurrencies in the European Union.

The Fifth Anti-Money Laundering Directive (AMLD5), which was signed into law in July 2018, came into effect on January 10, 2020. Under the new anti-money laundering law, banks can not simply stop providing services to cryptocurrency-related payment processors or businesses without valid justifications, as per Forbes report.

The new crypto regulations force several crypto businesses to shut down.

The new anti-money laundering law requires crypto companies to be more transparent with authorities and requires them to collect users’ data. After the law came into effect, several crypto companies announced that they could not compromise with the privacy of their users and shut down their operations. However, the AMLD5 also ensures that banks from now on can not stop providing services to crypto companies without valid justifications.

Crypto regulations are getting strict around the world.

Last year, the Financial Action Task Force (FATF) issued guidelines regarding cryptocurrency regulations. Several countries have already started adopting those guidelines. The international Financial watchdog had asked countries to implement those guidelines within a year. Crypto regulations around the world have become more strict as governments try to curb down the use of bitcoin and cryptocurrencies.

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