Calls for cryptocurrency regulations are getting louder by the day. The Irish government has approved an anti-money laundering bill that will have serious ramifications on the cryptocurrency industry in the country. The law whose directive came into effect on July 9th, 2018 provides a framework that European financial regulators should use to regulate digital currencies.
Irish Government Anti-Money Laundering and Cryptocurrency Regulations
The bill provides a comprehensive framework for regulating cryptocurrencies in Ireland. One of the main objectives of these new regulations is to curb money laundering in the country. The framework will also be instrumental in ensuring that digital currencies such as Bitcoin are not used to fund terrorist activities in the country and abroad.
One of the notable facts about this bill is that it increases the scope to digital currency wallet providers and crypto platforms. It also ends the anonymity of savings and bank accounts and enhances the exchange of financial information among authorities.
All European Union states are required to implement this directive in their national laws by January 20, 2020. Adoption of the new law throughout the EU will significantly help to streamline the cryptocurrency industry by eliminating the risks associated with the currencies. It will also ensure that all stakeholders get value for the money they invest in the blockchain technology and their preferred cryptocurrencies.
Apart from recognising the European Union direction, the bill dubbed, Criminal Justice (Money Laundering and Terrorist Financing Amendment Bill 2019 will make the existing legislation more thorough and useful in monitoring the financial industry in the region. It does this by providing a clear framework for tracking the use of virtual currencies and limiting prepaid cards.
Charlie Flanagan, the Minister of Justice, recently told the press that money laundering is a serious crime that enables terrorists and criminals to operate and destroy lives of millions of people in the process. Charlie went ahead to state that criminals have put in place measures that allow them to take advantage of the European Union open borders to commit crimes.
Ireland fully supports the fifth European Union money laundering directive. It has vowed to put in place all measures needed to facilitate its full implementation if it is passed. Concisely, the bill will require all financial institutions to carry out thorough due diligence when dealing with new clients. They will also not be allowed to open safe deposit boxes whose owners are unknown.
It is also reported that the bill gives Garda and Criminal Assets Bureau the permission to access and use bank records when carrying out investigations that involve money laundering and other related crimes.
Just last month, the European Union Blockchain Observatory and Forum incorporation of digital versions of national fiat currencies on blockchain technology will enhance the provision of smart contracts. If that happens, it will bring to light the full potential of blockchain technology by allowing users to create automated agreements. Users will also be able to do direct transactions using these currencies instead of relying on cryptocurrency as a proxy.
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