What New Has the 5AMLD Directive Brought to European Crypto Business and Users?

The 5AMLD directive has made significant changes to the way it now deals with digital currencies and cryptocurrency business in the European Union.

This law entered into force on January 10, 2020, a year and a half after its approval. The law classifies digital assets and their creators as “responsible entities”. The cryptocurrency sector is now considered along with gambling, , banking services and payment services. The position of the crypto business has become the same as that of any other business.

5AMLD also involves protecting the cryptocurrency business from tough actions by banks. The new law requires banks to legally substantiate their actions if they decide to refuse to service a particular entity whose business is associated with cryptocurrencies. Now banks and payment systems will not be able, on their own initiative and without good reason, to refuse to service cryptocurrency companies.

In Europe, cryptocurrency enthusiasts who are free to buy digital assets without fear of bank intervention are also easier to breathe.

Although AMLD5 lends considerable legitimacy to cryptocurrencies, it is by no means without flaws and is not a directive that focuses only on cryptocurrencies. The law, among other things, aims to give the crypto industry equal growth opportunities that other sectors enjoy. AMLD5 also eliminated the uncertainties that cryptocurrency companies faced last year, implementing the AML and CFT standards introduced by the FATF.

The introduction of blockchain technology and cryptocurrencies has long become a living topic in the European Union. Since 2016, seminars have been organized and committees have been created whose purpose is to better explore the possibilities of blockchain technology. At some point, the central place was occupied by the call for the creation of a “single digital currency of the EU,” the idea of ​​which became even more relevant after the announcement of the Libra project by Facebook.

Author: Marko Vidrih

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