Only KYC approved Virtual Currencies will be allowed to work within European Framework…..
The European Union Wants to Identify Bitcoin Users
The European Parliament and the Council of the European Union have proposed amending a directive on preventing money laundering and terrorist financing that will require cryptocurrency exchanges and wallets to identify suspicious activity, a directive that would include identifying bitcoin and other Anonymous Cryptocurrency users.
To prevent the EU financial system from being used for money laundering and terrorist financing which will come into play on June 6th.
The European Parliament in May approved a proposal for a task force to investigate the role of some cryptocurrencies like bitcoin as there is a vast usage that is well known with the anonymity of some cryptocurrencies which enables their misuse for criminal purposes.
The OneCoin concept that launched in September 2014 has already started implementing this procedure in 2015. OneCoin actually has taken this one step further & started storing their KYC (Know Your Customer ) details actually into their Blockchain. No one else has taken this protocol yet, so they are miles ahead of the game.
The One is the only Cryptocurrency to imply with all European Laws regarding Cryptocurrencies….
Read the article and admire Dr Ruja Ignatova….
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“The European Commission adopted proposals on 5 July 2016 for legislation to amend the 4th Anti-Money Laundering Directive (4AMLD) that will bring virtual currency exchanges and wallet providers into the EU’s anti-money laundering framework.
The proposals will see exchanges and custodial wallet providers added to the list of obliged entities required to carry out customer due diligence (also known as KYC), monitor transactions and report suspicious transactions. Only those engaged in exchanging between virtual and fiat currencies are included. Virtual currency to virtual currency exchanges is not covered. So, for example, Bitcoin-to-Ether exchanges will not be regulated.
The proposals extend 4AMLD to “providers engaged primarily and professionally in exchange services…” which suggests companies whose primary business is not exchanging virtual currencies, and anyone buying or selling virtual currency occasionally or just funding a purchase is excluded.
Only those wallet providers offering custodial services of credentials necessary to access virtual currencies are to be included in the legislation. However, there is no primary purpose limitation, meaning anyone who has responsibility for taking care of virtual currency keys for someone else will likely need to carry out due diligence, monitor transactions and report suspicious activity. Multisig keyholders could well be caught by these provisions.
The draft directive was much expected and is in line with the Commission’s Action Plan on combatting terrorist financing announced in February. I am pleased the Commission has listened to EDCAB’s interventions and decided to drop some of its more radical proposals. However, EDCAB continues to make representations to the Commission, MEPs and member states, particularly regarding scope and definitions.
The proposals now go to the European Council (comprising member states) and the elected Parliament before becoming law. The 28 member states (the UK is still one, for now) will then have to transpose the directive into national law, a process that normally takes up to 2 years. However, the Commission is calling for harmonisation to be completed by 1 January 2017. With the European Parliament currently in its last plenary sitting before the summer holidays and with much other money laundering and terrorist financing provisions to be considered, that timeline looks to be very challenging.”
The proposal defines “virtual currencies” as a digital representation of value that can be digitally transferred, stored or traded and accepted by natural or legal persons as a medium of exchange, but does not have legal tender status.
Under the new proposal, member states are required to ensure that exchange services between virtual currencies and fiat currencies, and custodian wallet providers, are registered.
So the world of Cryptocurrency is changing and the more advanced it becomes the more the governments will want their slice of the pie. Anonymous transactions and data will no longer be allowed.
The question is how long did people really think they could get away with being anonymous for & Is this why Bitcoin and other currencies that are Anonymous have not hit the mainstream after all these years?
Only time can tell how this will play for the market space, but currencies like Onecoin are fully in the race to lead the charge to bring transparency and compliance to the industry.