The European Parliament, made up of the directly elected parliamentary institutions of the European Union, have recently voted on whether to support or reject the notion of employing closer regulation for digital currencies.

In an overwhelming election of support, an agreement to work hand-in-hand with the European Council was reached and this will aim partly to reduce the risk of cryptocurrency being used in money-laundering schemes as well as ‘terrorism financing’ – activities geared towards providing financial support to individual terrorists or terrorist groups.

According to a press release by the organization, the vote saw 574 parliamentary members in favor, thirteen votes against, and 60 members in absentia.

Using particular courses of action, the new ruling hopes to tackle the issues and dangers tied in with the anonymity of virtual currency by implementing new rules for cryptocurrency exchanges, platforms and wallet providers These actions include ensuring that entities operating in cryptocurrency are registered with authorities and the necessitated applications of due diligence procedures, such as going through a know-your-customer (KYC) process.

In the release, members gave insight into the ruling. Member of the European Parliament (MEP) and Latvian politician Krisjanis Karins said that criminal conduct hasn’t changed and that criminals will “use anonymity to launder their illicit proceeds or finance terrorism.” He has hopes that the legislation will be able to “address the threats to our citizens and the financial sector by allowing greater access to the information about the people behind firms and by tightening rules regulating virtual currencies and anonymous prepaid cards.”

Dutch MEP Judith Sargentini echoed Karins’ concerns, saying that billions of Euros are lost yearly to criminal activity such as money laundering and tax evasion, and this is the “money that should go to fund our hospitals, schools and infrastructure.” She continued that this legislature will see the introduction of “tougher measures” and will extend the responsibility of financial companies to protect their customers – and ensure that those customers are who they say they are. She trusts that the ruling will be able to “shine a light on those who hide behind companies and trusts and keep our financial systems clean” and “will also be of enormous benefit to developing countries and their fight against illicit outflows of money which is desperately needed for investment in their own societies.”

It is reported that the updated mandate will take effect three days after it is legally published in the Official Journal of the European Union, and following this date, the relevant countries within the EU will have 18 months to affect the ruling into national law.