..

Breakingviews - EU Transparency Purge May Boost Bitcoin Legitimacy

Written by:
Guest
Published on:
May/14/2018

MILAN (Reuters Breakingviews) - A European Union transparency drive may boost bitcoin’s legitimacy. The bloc agreed on Monday to force cryptocurrency exchanges to identify users. That will make it harder for criminals to use virtual cash to hide their ill-gotten gains.

The EU’s bitcoin assault is part of a broader attack on money laundering and the financing of terrorism. To do so, the bloc is updating the existing anti-money laundering directive to shed light on opaque areas of the financial world. One key novelty is a requirement for the dozens of European exchanges which trade in currencies such as bitcoin or ethereum, and the technology companies that store the money in so-called wallets, to carry out the same know-your-customer checks as ordinary banks.

The new rules are an important step in the fight against illicit money flows. Anonymity, guaranteed via encrypted procedures, is probably one of the main reasons for the soaring popularity of digital currencies, which have seen their market values exceed $400 billion this year. Paying for goods and services in bitcoin or similar allows users to bypass regulated payment systems. That appeals to drug dealers or terrorists. BlackRock Chairman Larry Fink recently called virtual currencies an “index of money laundering”.

The European transparency push could help change things. If transactions are no longer secret, this should deter usage for illicit means, and facilitate the work of law-enforcement agencies. It may also make it harder for criminals to hack exchanges, as happened with Slovenian group NiceHash last year.

Criminals can still use exchanges outside the EU. There’s also a danger that more trading simply moves off exchanges. But Europe is not alone in the fight. South Korea imposed similar rules earlier this year, and the United States may not be far behind. If more trading happens out of the shadows, virtual currencies could become more respectable.

Business/Financial News

Coinbase Goes Public, Exposure to Regulatory Danger?

Coinbase Goes Public, Exposure to Regulatory Danger?

Coinbase is making its initial public offering of stock April 14 and this has helped push the price of Bitcoin up to near $64,000 as of Wednesday morning.

Sudan Embraces the Blockchain, Arizona One Step Closer to Sports Betting

Sudan Embraces the Blockchain, Arizona One Step Closer to Sports Betting

The Bitcoin Association and the BSV delegation was welcome by the Sudan government last week in an effort to implement blockchain technology and this week Arizona was well on its way to becoming the next US state to legalize sports betting with only the Governor's signature needed.

Lawsuit Filed Against Dr. Craig Wright "Father of Bitcoin": Not Author of White Paper?

Suit Filed Against Craig Wright "Father of Bitcoin": Not Author of White Paper?

Suit seeks to prove Wright is NOT the rightful founder of Bitcoin, but some would argue we will know otherwise in due time.

Ethereum-based Virtue Poker Gets Malta Clearance

Ethereum-based Virtue Poker Gets Malta Clearance

Ethereum-based startup Virtue Poker plans to conduct an initial DEX offering (IDO). While these types of announcements typically get lost in the crypto waste dump - often where they belong - this one has a little more punch.

The Bitcoin White Paper:  Reclaiming Disk Space

The Bitcoin White Paper: Reclaiming Disk Space and Simplified Payment Verification (SPV)

Continuing in the series of YouTube episodes where Dr. Craig S. Wright and Ryan X. Charles discuss the Bitcoin white paper line-by-line, we arrive at the part of the discussion addressing multiple subjects. Both Reclaiming Disk Space and Simplified Payment Verification are talked about including a few other informative topics that sprung up.  

Syndicate