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EU Parliament voted to support tighter regulation of cryptocurrency, requiring exchanges and other customer verification

The European Parliament has expressed its support for stricter regulation of cryptocurrency.

On Thursday, the members of the EU Parliament voted in the overwhelming majority to support the agreement with the European Council to support the measures of an agreement in December 2017, part of which aims to prevent money laundering and the financing of terrorism. Cryptographic currency is used in the event.

According to a press release, the members of the parliament passed the bill with 574 votes in favor, 13 votes against and 60 abstentions.

The new legislation seeks to address the anonymity of financial technology by imposing regulations on cryptocurrency exchanges, platforms and wallet providers.

According to these measures, these entities must be registered with the authorities and will have to apply due diligence procedures, including customer verification.

According to the press release, the updated directive will take effect three days after being published in the "Official Journal of the European Union". Thereafter, EU member states will have 18 months to incorporate the new rules into national laws.

Member of the European Parliament and the joint rapporteur Krisjanis Karins stated in the press release:

“Crime has not changed. Criminals use anonymity to cleanse their illegal gains or to finance terrorism. This legislation allows for greater access to information from people behind the company and through the tightening of control over virtual currency and anonymous prepaid cards. Rules to help eliminate threats to our citizens and financial industry."
Another deputy rapporteur and member of the European Parliament, Judith Sargentini, said that the amount of money lost each year due to money laundering, terrorism financing, tax evasion and tax avoidance reached “a few billion euros,” he added. This money "should be used to fund our hospitals, schools and infrastructure."

Sargentini continues to say:

"Through this new legislation, we have taken tougher measures to expand the financial entity's obligation to conduct customer due diligence."
A rapporteur stated at the time that the consensus agreement reached by the European Council in December last year also proposed a series of new EU-wide penalties for those convicted of money laundering. These measures marked "an important milestone in the fight against organized crime in Europe."