Cryptocurrency

Cardano

Carbon

Rule

Foundation

<h2 class="wp-block-heading" id="the-travel-rule-an-anti-money-laundering-measure">The Travel Rule: An Anti-Money Laundering Measure</h2>
<p>The Travel Rule, a law passed by the EU, is aimed at crypto service providers to integrate anti-money laundering (AML) and counter-terrorist financing (CFT) methods into their systems. The principle which is already implemented in the banking sector is the requirement for banks to collect and forward data on the fund transfers.</p>
<p>As of December 30th, the cryptocurrency exchanges based in the EU will be obliged to provide a comprehensive report for each transaction. Among other inputs, the information about the person who sent money, the person who received it, and the type of the deal will be included. The most desired outcome of [correction: is to detect [one example can be to] and prevent suspicious activities right from the start.</p>
<p>This is a very rough road with good intentions. However, companies [correction: which are] excelling in the digital commerce; notably <a href="https://btc-pulse.com/hackers-exploit-old-http-server-tinstall-miner/" rel="noopener noreferrer nofollow">cryptocurrency </a>providers, and various corporate conglomerates are compelled to perform the due diligence of updating their systems. This will result in not only a more substantial sum of money but will also take longer. Nevertheless, European authorities are positive that future profits will be far greater than this start-up expense, thus being able to the laundering of money more efficiently.</p>
<h2 class="wp-block-heading" id="impact-on-european-cryptocurrency-exchanges">Impact on European Cryptocurrency Exchanges</h2>
<p>The new standards recently introduced by the European Union is expected to further impact cryptocurrency trading platforms. These platforms will not be only required to furnish detailed information about users and transactions but they will also have to detail about both the policies and their commitments [correction: need to be setting clear policies regarding cross-border transfers and multi-intermediation.]</p>
<p><a href="https://x.com/EBA_News/status/1808866742900338785" target="_blank" rel="noopener noreferrer nofollow">Regulation is just an important</a> element of a group of rules that come along with the framework of digital assets in Europe such as the Markets in Crypto-assets (MiCA) regulation. To bring everything to their attention, one of the prerequisites will be to file a declaration on their compliance policies with them. Thus, it is a must that transactions meet the new standards. The providers of the software will have two months starting from the day the rule gets its official way to announce their compliance. This duration is for allowing the companies to better understand and incorporate the requirements in their operations. Yet the stakes are high and the failure to comply may lead to quite severe penalties.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
   <p lang="en" dir="ltr">The <a href="https://twitter.com/hashtag/EBA?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#EBA</a> has just published new guidelines on the information that should accompany&nbsp;transfers of funds and certain crypto assets. <br><br> <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f517.png" alt="🔗" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://t.co/uNykQqOHwb" target="_blank" rel="noopener noreferrer nofollow">https://t.co/uNykQqOHwb</a> <a href="https://t.co/EwA6ZtYm8c" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/EwA6ZtYm8c</a></p>— EU Banking Authority – EBA <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1ea-1f1fa.png" alt="🇪🇺" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@EBA_News) <a href="https://twitter.com/EBA_News/status/1808866742900338785?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 4, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<h2 class="wp-block-heading" id="towards-a-more-regulated-but-beneficial-future">Towards a More Regulated but Beneficial Future?</h2>
<p>Safe and more transparent cryptocurrency transactions are seen as the measure to cut criminal activities in the EU industry, no EUmatter how much new steps such as the Travel Rule may seem unaccommodative. The Cardano Foundation has shown the transparency of new regulations in that there is now a partnership with the Crypto Carbon Ratings Institute to comply with the new regulations. They have published sustainability indicators for the Cardano <a href="https://btc-pulse.com/coinbase-claim-gary-genslers-crucial-sec-lawsuit/" rel="noopener noreferrer nofollow">network</a>, which has resulted in display a proof-of-stake (POS) network with a reduced carbon emission and a decreased carbon footprint. The company Cardano is on the right path, its attempts to be in sync with the new regulations and also to have a green network are visible in its next sustainability report.</p>
<p>It can be said that thanks to the initiatives of the companies in the industry the pace of the regulation has to some extent been altered. The chief target is that prevention devices which make the use of digital currency a safe practice as well as cut down the risks of laundering of dirty money and channeling funds into terrorists must be secured.</p>
<p>Game-changing tradeoffs as the respect of privacy for the sake of the implementation of anti-money laundering legislation may not be so clear, but as a matter of fact restraints of the <a href="https://btc-pulse.com/coinbase-claim-gary-genslers-crucial-sec-lawsuit/" rel="noopener noreferrer nofollow">governmental </a>one on the other pick up the tail. Relatively speaking, more well-defined and transparent regulations would build confidence in the crypto market and bring more institutional funds. Withdrawal of the stigma of being fraught with scams and chicaneries will also be an advantage to cryptocurrency. Thus, the environment will be conducive to the launching of financial innovations being a more stable one.</p>

EU Implements Stricter Regulations on Cryptocurrency Exchanges Starting December 30th

Table of Contents

BTC-Pulse

Other articles published on Jul 6, 2024

3 coins to invest for people with limited budget for big gains: PAW FURY (PAW), Bome (BOME), Bonk...

Hidden Crypto Gems Set To Shine In the Coming Altcoin Season

Bitcoin Miners Face Profitability Challenges Amid Rising Production Costs

Crypto Super App Telegram Boosts TON Blockchain With Over 900M User Base

Ever Dreamed of Billionaire Status? Here’s Why MoonBag Staking Rewards Could Be Your Launchpad!

Ethereum Price Prediction for July 2024: Will ETH Prices Recover or CRASH Further?

Join our free newsletter for daily crypto updates!