European Central Bank VP says no to crypto ban, but will remain vigilant on illegal activities 

Luis de Guindos, vice president of the European Central Bank, assured the public that the central bank isn’t planning to ban cryptocurrencies.

But he highlighted that policies to combat money laundering transactions and terrorist financing will still be enforced.

In a report published by the “myconomy”, a Madrid-based news outlet, Guindo said that he wants to implement strict policies that would prevent lawbreakers from using cryptos in illegal activities.

“I would not prohibit them, but issuers must be required to follow the same conditions as those of other financial assets and avoid everything tied to money laundering or terrorist financing,” Guindos said.

He also said that with regulators in place, cryptocurrencies, even with their volatile nature, cannot affect an economy’s financial stability.

Upcoming new rules

The European Commission, which is the executive branch of the European Union, is currently proposing new policies which are intended to better regulate the flow of cryptocurrencies.

One of its proposals includes requiring a more detailed Know-Your-Customer (KYC) process, just like the standards followed by the traditional financial institutions.

The aim of this proposal is to treat cryptocurrency transactions like bank transfers, so they could be properly monitored and immediately detect illegal activities.

With the rising number of cases all over the world where criminals take advantage of cryptocurrencies pseudonymity, this proposed measure is important to prevent this activity from getting out of hand.

Eliminating anonymous wallets

Another policy being proposed is the banning of anonymous cryptocurrency wallets and the establishment of a new anti-money laundering body to plug the current loopholes of the cryptocurrency system.

“The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system,” the European Commission said.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/european-central-bank-vp-says-no-to-crypto-ban-but-will-remain-vigilant-on-illegal-activities/