Vote Moves Europe Closer to AML Policy for Digital Currency Exchanges

A European Parliament committee voted to adopt a report on virtual currencies today, moving Europe one step closer to an AML policy for the industry.

AccessTimeIconApr 26, 2016 at 6:01 p.m. UTC
Updated Aug 18, 2021 at 4:47 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The European Parliament’s Committee on Economic and Monetary Affairs voted almost unanimously to adopt its report on virtual currencies today.

The 54-to-1 decision was one of the last hurdles for a measure that could lead to the creation of cryptocurrency task force before it is put before vote by the entire European Parliament.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Speaking with CoinDesk this afternoon, founder of the European Digital Currency and Blockchain Technology Forum (EDCAB) described the vote as part of a larger movement to regulate virtual currency exchange platforms under existing anti-money laundering (AML) controls.

    EDCAB founder Siân Jones said:

    "It’s a significant step forward that signals encouragement and support whilst recognizing that there are for legislators and policy makers some challenges."

    Jones was one of three industry stakeholders to address members of the Parliament during a virtual currency public hearing earlier this year.

    While passage of the report with near-unanimous agreement might be seen as broad support, the decision was not without effort. The original five-page document was eventually accompanied by an additional 62 pages of amendments, according to Jones.

    Under terms of the report, virtual currency exchanges would fall under the purvey of existing AML controls and a new task force for overseeing other digital currency-related businesses would be created.

    Despite the measures, Europe has long been thought of as having more favorable digital currency regulation than other developed nations, particularly the US.

    For example, the European Court of Justice has exempted bitcoin transactions from Value Added Tax, effectively recognizing the digital currency as a means of payment on par with other currencies. By comparison, certain agencies in the US view bitcoin as property, meaning it is taxable based on the difference in price from purchase to sale, even if that sale is in a merchant transaction.

    Today's development comes after the Internal Market for Consumer Protection Committee passed its own version of the report as the rules moves closer to a possible vote in a plenary session this May in front of all 751 members of European Parliament.

    European parliament image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.