The debate over whether or not the cryptocurrency industry needs international regulations seems to be never-ending. On one side of the argument are those who believe that crypto is fine as it is, with a patchwork of regulatory jurisdictions that pepper crypto’s legal landscape.
However, the party of individuals and larger entities seems who call for international regulations on crypto seems to be growing larger, particularly whenever a disaster strikes or when major security flaws in exchanges or other platforms are revealed.
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As it stands now, what’s good for the goose is good for the gander–for example, cryptocurrency exchanges in places that have established security standards may be more attractive to a wider number of users. After all, users in Northern Ireland or Cambodia may benefit indirectly from regulatory standards that have been placed on a Japanese exchange (Japan has one of the most advanced regulatory environments for crypto in the world.)
But Japan is still quite an anomaly. The governments of most countries are still in the infancy of understanding what crypto is, let alone creating a comprehensive regulatory environment for it.
Therefore, the introduction of Europe’s AMLD5, a new anti-money laundering regulation, will have a significant impact on the way that any cryptocurrency exchange (or similar service) that wishes to operate in Europe conducts its KYC (know your customer) and AML (anti-money laundering) checks.
Agreement on #AMLD5 just reached by EU institutions. New rules will increase transparency on the beneficial owners of companies and trusts and make the EU stronger in fight against #MoneyLaundering and terrorism financing @judithineuropa @krisjaniskarins @EU2017EE @EU_Commission pic.twitter.com/NXPZOnMRXi
— Roberto Gualtieri (@gualtierieurope) December 15, 2017
“A variety of terms are used, often interchangeably and without a clear definition,” the report said. “Even the term cryptoasset lacks a specific definition,” the report explained. “‘Cryptoasset’ and ‘token’ can have different meanings depending on the context in which they are used.”
Therefore, even if the directive itself may be somewhat ham-handed when it comes to regulating the cryptocurrency industries, it could pave the way forward for what may eventually become a global set of regulations for crypto.