Inclusion of crypto in 5AMLD first step to sector regulation

Author: Olly Jackson | Published: 26 Apr 2018

The European Union has updated its latest Anti-Money Laundering Directive (5AMLD) to include crypto exchanges and custodian wallet providers, the first of many expected moves to account for ongoing concerns surrounding digital currencies.

The new framework, released 19th of April 2018, obliges exchanges and wallet providers to conduct know-your-customer (KYC) and money laundering checks on investors. While this is a landmark for the sector, regulation for initial coin offerings (ICOs), new tokens and transfers between virtual currencies is expected by the end of the year.

London Block Exchange founder and chief executive Benjamin Dives said that added EU regulation is a positive for investors and gives them reassurance that they are investing safely. As for the rules themselves, Dives said they will not have much of an effect on exchanges and investors.

"There are no exchanges I’m aware of that don’t conduct KYC and AML checks already," he added....