Ireland approves the new anti-money laundering bill aimed at cryptocurrency and blockchain assets

Ireland approves the new anti-money laundering bill aimed at cryptocurrency and blockchain assets

The European Union was expected to promote trade and peace after the Second World War. In the six decades since its inception, the idea has come a long way. While there are still many problems within the member nations, especially Britain coming out of the union, it has held together pretty well.

This is mainly due to the consent of the directives which are then implemented in the laws by the respective partner countries. In a decision taken on January 3, the government of Ireland approved a bill in line with the Brussels directives on financial matters.

More power to access individuals' information

According to reports from the Irish Times, the Council of Ministers approved a bill that regulates money laundering in Europe [AML] Directive. The decree, which the European Parliament had approved in July last year, establishes a framework for the financial guard dogs of the member nation, in order to better regulate digital currencies. The intention is to primarily reduce the possibility of money laundry and financing of terrorism.

Members of the EU have until January of next year to incorporate these orders into their national laws. These amendments aim to expand the capabilities and range of cryptographic platforms, exchanges and wallet providers. It will also make anonymous bank accounts almost impossible.

Finally, the mechanism for sharing information between member states will also be improved.

EU Directive widely supported in Ireland

Along with this, the amendment brought by the Irish Government to their criminal justice (Money laundry and financing of terrorism) (amendment) Bill 2019 further strengthens it, in particular on "virtual currencies for terrorist financing and the use of prepaid cards".

Charlie Flanagan, Minister of Justice, discussed the serious implications of money laundering and its links with criminals and terrorists. This has various implications, including the destruction of many innocent lives.

"Criminals try to exploit the EU's open borders and measures at EU level are vital for this reason, and Ireland strongly supports the provisions of the Fifth EU Money Laundering Directive," he said.

It is expected that the government will be able to approve the bill. If and when this happens, more privacy of people staying in the EU will be sacrificed at the security altar.

Financial institutions will have to be stricter with the details of new clients, anonymous filing boxes will have to be defunct and the Asset Office will have full access to bank details in case of investigation.

National cryptocurrencies

Many countries have explored the possibilities offered by the blockchain. Some like India have decided not to do it for them, while others like Venezuela are seriously considering switching to it.

At the end of last year, the Observatory and the Blockchain forum of the European Union also added their comments on the matter, stating:

"Putting digital versions of national blockchain currencies means that they could become integral parts of smart contracts, which would unlock much of the potential blockchain innovation by allowing parties to create automated agreements, including direct transactions in these currencies, instead of having to use a cryptocurrency as a proxy. "

In the last two months there has been a considerable increase in activities related to cryptographic activities, in particular in the FinTech sector.

With the European powers such as Germany and France becoming more open to blockchain services and financial institutions, it seems an interesting time for the EU and the crypto industry.

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