Home News It Begins: Crypto Europe Grapples with Fifth Anti-Money Laundering Directive, AMLD5

It Begins: Crypto Europe Grapples with Fifth Anti-Money Laundering Directive, AMLD5

TL;DR: Bottle Pay. Deribit. Simplecoin. Chopcoin. Those are European-based cryptocurrency businesses publicly capitulating prior to this week’s implementation of AMLD5, the Fifth Anti-Money Laundering Directive published by the European Parliament in the Official Journal of the European Union. Some have closed shop, while others are planning to move a hemisphere away in response. 

Crypto Europe Grapples with AMLD5

More than two dozen European Union (EU) member states have formally adopted AMLD5, rules requiring cryptocurrency exchanges and custodial services especially to both register with their respective country’s regulatory agency and conform to know-your-customer (KYC) and anti-money laundering (AML) standards. Failure to do one or the other, much less both, will draw law enforcement scrutiny, the directive appears to imply.

As is usually the case, larger, better-established businesses can weather such burdens, and have historically encouraged such mandates as a way to create competition barriers for smaller startups. That’s always the delicate balance compulsory state regulation must strike, and it’s not clear whether the EU has.

Still other cryptocurrency enthusiasts view AMLD5 as a step toward what is known as regulatory clarity — love or hate them, businesses need government regulations to at least be transparent, understandable, public. It’s much too early for a decisive verdict on AMLD5 on the first two counts, but it is public and was anticipated. How the directive operates in practice is yet another hurdle crypto businesses must navigate in the coming days, weeks, months, and presumably years.

As alluded to earlier, derivatives exchange Deribit plans to leave the Netherlands for the friendlier confines of Panama in Central America, citing AMLD5 specifically. And those businesses that do remain are again saddled with figuring out how each member state interprets the directive: jurisdiction, penalties, assorted other requirements. The time for speculation has ended.

David Bond

CONTINUE THE SPICE and check out our piping hot VIDEOS. Our podcast, The CoinSpice Podcast, has amazing guests. Follow CoinSpice on Twitter. Join our Telegram feed to make sure you never miss a post. Drop some BCH at the merch shop — we’ve got some spicy shirts for men and women. Don’t forget to help spread the word about CoinSpice on social media.

DYOR: CoinSpice is your home for just spicy crypto things. We’re not affiliated with any cryptocurrency project or token. Each published piece is intended for information purposes only, not investment advice and not in the hope of impacting speculative markets. There are plenty of trading sites and coin-specific advocacy journals out there, we’re neither. CoinSpice strives for rigorous accuracy in our reporting. Information presented here is contingent usually on a host of factors, and the ecosystem moves fast — prices change, projects change, and at warp speed. Do your own research.

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.