The latest cryptocurrency news show that the crypto laws in Europe are about to tighten up. We can see that the European Union is ready to gradually tighten up the guidelines in the crypto space – in a time when Bitcoin and many altcoins are volatile and susceptible to any changes in terms of regulation.
All of this will make cryptocurrency users likely to feel the difference in the coming months. These measures stem from obligation of user reports to transpose EU’s Fifth Anti-Money Laundering Directive (AMLD5) into the national laws by January. If this happens, we could expect a very changing landscape regarding cryptocurrency regulation.
Speaking of, the crypto laws in Europe could start from Germany. As the flagship of EU, this country is just one of the first to really make the modifications. As seen on many best cryptocurrency news sites, brand new anti money laundering (AML) laws entering into force next year will oblige digital asset exchanges including providers of crypto payment and custodian services that will apply for permits from Federal Financial Supervisory Authority (Bafin). The regulation should wrap up by the end of 2019 in Germany, so that it is becoming implemented starting from January 2020.
Starting next year, the German economic authorities will lead the new crypto laws in Europe and start thinking about electronic coins as an economic instrument. Even though some welcome the regulatory quality regarding the status of cryptocurrencies, others believe that a lot more aspects need clarification.
In the altcoin news, we can see that Germany is one of the countries that is truly hurting the crypto businesses – especially within the country – but overseas, too. Aside from this country, the Czech Republic has also been focusing on a unique group of rules and pertaining to the initiative of changed crypto laws in Europe. Failure to register utilizing the nationwide Trade Licensing Office, therefore, could lead to massive fines for service providers in the space.
Estonia is yet another EU member that has been tuning its crypto laws recently. This small Baltic nation was one of the main in the continent that produced favorable circumstances for businesses dealing with digital assets, attracting many of them to its jurisdiction.
AMLD5 went into power on July 9, 2018 as part of the new crypto laws in Europe with a main goal of expanding the scope of anti-money laundering regulations to pay for crypto trade platforms as well as wallet providers.
The German Government Establishes A Sound Blockchain Strategy
“The young and innovative blockchain ecosystem in Germany should be preserved and continue to grow. Germany should be an attractive location for the development of blockchain applications and investments in their scaling. At the same time, large companies, small and medium-sized enterprises and startups, as well as the public sector, countries, civil society organizations, and citizens should be enabled to make informed decisions about the use of technology.”In order to achieve its newly outlined blockchain goals, the German government said that one effort that it wants to undertake is devising an “investment and growth-oriented regulatory framework” geared to the domestic crypto economy. This way, the markets could “work without state intervention and the principle of sustainability is guaranteed.” Furthermore, the ministries noted that they were going to take a multi-pronged approach towards becoming a blockchain hub. As many best cryptocurrency news sites noted, Germany is looking to promote entrepreneurs, encourage investments, guarantee stability, enable fair competition, support stakeholders and foster international cooperation in the attempt to bring blockchain to the masses. All of these goals were created through consultations with officials of the German government - and more than 150 crypto economy stakeholders over the past few months. The task at hand is now putting everything into action.
“At the European and international level, the Federal Government will work to ensure that stablecoins do not become an alternative to state currencies,” the strategy document read.The grand question for now is whether other smaller European countries will follow Germany's (and France's) lead in taking a strict stance towards blockchain innovation.
Upbit Exchange Delists Privacy Coins Including Monero, Dash and Others
“There are also crypto-assets that can selectively utilize anonymity features among projects that are subject to end of transaction support. For these crypto-asset, Upbit has only supported transparent withdrawal/deposit support. Nevertheless, the decision to end trading support for the crypto-asset was also made to block the possibility of money laundering and inflow from external networks. Upbit will continue to consider crypto-asset that represent anonymity functions as candidates for designation of investment warning crypto-asset.”Now that Upbit exchange decided to delist the privacy coins, the coming altcoin news show that coin prices are starting to drop. According to Messari analytics, the Zcash price dropped over 50% since July 1 joined by Monero, which has been down near 20% over the same period. Still, the exchange delistings and price drops have not necessarily slowed privacy coin tech development. Over the past month, the Electric Coin Company by Zcash released Halo which is the long-awaited zk-SNARK which can verify a single blockchain in one proof.
CME Group Will Launch Bitcoin Options Early In 2020
“Based on increasing client demand and robust growth in our Bitcoin futures markets, we believe the launch of options will provide our clients with additional flexibility to trade and hedge their bitcoin price risk. These new products are designed to help institutions and professional traders to manage spot market bitcoin exposure, as well as hedge Bitcoin futures positions in a regulated exchange environment.”CME Group also detailed that since their 2017 launch, there have been more than 20 "successful" futures expiration settlements and more than 3,300 individual accounts trading the contracts. Close to 7,000 CME Bitcoin futures contracts are traded on average each day, the company stated. Meanwhile, the coming altcoin news in March this year showed that CBOE abruptly changed the tack and halted its futures product. Now that CME Group will launch Bitcoin options and CME won't (for now), this gives a massive advantage to CME as the sole provider of Bitcoin futures in the US. However, it seems like CME will have a new rival from Monday. The rival is the Intercontinental Exchange (ICE) and is subsidiary Bakkt - both of which are preparing to offer a new BTC futures product. Unlike CME and its cash contracts, ICE will be offering a physically settled product which means that its customers will receive actual Bitcoin (BTC) instead of the cash equivalent.
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- The German Government Establishes A Sound Blockchain Strategy
- BitMEX CEO Arthur Hayes: ‘Traditional Traders Are Under Pressure’
- McAfee Believes Bakkt Launch Could Jumpstart Widespread Adoption
- Upbit Exchange Delists Privacy Coins Including Monero, Dash and Others
- CME Group Will Launch Bitcoin Options Early In 2020
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