Crypto regulations remain one of the most debated topics due to sensitivity. Due to a lack of regulations, politicians around the world are skeptical regarding the future of cryptocurrencies. For instance, U.S. President Donald Trump is one of them.
In this situation, it is important to create regulations that will be acceptable for the crypto community as well as politicians.
Fifth Anti-Money Laundering Directive (5AML) will address crypto-related companies for the first time.
Let’s have a look at how this directive defined the virtual currency. According to the regulations, virtual currency is a digital representation of values that are not issued or guaranteed by a central bank or other authorities.
In less than one month, as part of 5AML regulations, cryptocurrency platforms which are offering their services with the European Union must comply with new regulations.
They will have to submit information about their customers to authorities; also they have to identify suspicious activities.
The incoming regulations will require companies offering custodial services for cryptocurrencies to comply with the AML regulations. It means that crypto-related companies must abide by the rules mentioned in the Fourth Anti Money Laundering Directive.
For example, two giant companies such as Binance and OKEx will have to follow these regulations.
Crypto-Related Companies and New Regulations
Binance is one of the most popular exchanges around the globe. It became popular thanks to its high withdrawal limits without requiring know-your-customer (KYC) checks.
Due to new AML regulations, Binance should change its policy.
Binance already proved that it is ready to compromise when it had to comply with heightened regulations.
However, earlier this year, Binance decided to quit the U.S. before launching Binance US.
However, another crypto-related company decided to quit this industry. BottlePay mentioned that it would be impossible to continue offering its social media tipping service. The company would cease operating in a couple of weeks.