From Bat-Signal to Bitcoin: Projecting ‘Orange Pill’ on Banks
• Bitcoiners in Germany projected the Bitcoin logo on the European Central Bank building in Frankfurt urging bankers to “study Bitcoin”.
• The European Parliament has adopted a new draft bill focused on Anti-Money Laundering and Countering the Financing of Terrorism.
• These proposed rules limit cash payments to up to 7,000 euros for cryptocurrency transactions or 1,000 euros if the user’s identity is unknown.
Projection of “Orange Pill” on Banks
Bitcoiners in Germany have projected the preeminent cryptocurrency’s logo with a message to “study Bitcoin” on the side of the European Central Bank building in Frankfurt. The images were shared widely across social media by notable Bitcoin supporters and various company profiles.
EU Drives Crypto Regulation
In response, the European Parliament has adopted a new draft bill focused on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). This sets out potential new rules enforcing Know Your Customer requirements for traditional financial and crypto-related services as well as restrictions on cash and cryptocurrency payments for goods and services where customers cannot be identified. Cash payments are limited up to 7,000 euros for cryptocurrency transactions or 1,000 euros if the user’s identity is unknown.
MiCA Bill
The MiCA bill will come into effect in 2024, providing a set of guidelines aimed at regulating the cryptocurrency market in Europe. It is separate from these proposed new rules but works towards achieving similar goals – that is; enhanced consumer protection when dealing with cryptocurrencies as well as preventing money laundering activities through digital currencies such as Bitcoin.
Wachsman’s View
Liam Murphy, managing director of EMEA at Wachsman says that this AML-CFT bill adopted by parliamentarians marks a significant step forward for regulatory clarity across crypto markets within Europe. He suggests that it provides much needed legal certainty that will help foster trust amongst both investors and regulators alike whilst bringing greater visibility into how digital assets are used throughout Europe.
Conclusion
These laws seek to ensure better consumer protection when dealing with cryptocurrencies while also preventing money laundering activities through digital currencies such as Bitcoin. With more transparency and regulatory clarity over digital asset use throughout Europe, this could pave way for increased adoption and usage of cryptocurrencies over time.
