Cryptocurrency Q&A
Does amld5 apply to Crypto-to-crypto exchanges?
Does amld5 apply to Crypto-to-crypto exchanges?
CherryBlossomFalling
Tue Aug 06 2024
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7 answers
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Excuse me, I have a question regarding the applicability of AMLD5 to crypto-to-crypto exchanges. As the regulation aims to combat money laundering and terrorist financing, I'm curious to know if it extends its reach to these exchanges where users trade one cryptocurrency for another, without involving any fiat currencies. Would you be able to clarify if AMLD5 applies to such transactions, and if so, how does it affect the operations of these exchanges? Thank you for your time and attention.
7 answers
CryptoSavant
Thu Aug 08 2024
The AMLD5, or the Fifth Anti-Money Laundering Directive, does not explicitly apply to cryptocurrency-to-cryptocurrency exchanges. This distinction highlights a gap in the regulatory framework for digital assets.
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HanRiverVisionary
Thu Aug 08 2024
Despite AMLD5's limitations, cryptocurrency exchanges are not entirely unregulated. They fall under the purview of the Financial Action Task Force's (FATF) Recommendation 16, also known as the "crypto travel rule."
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Valeria
Thu Aug 08 2024
The crypto travel rule requires that virtual asset service providers (VASPs) collect, hold, and transfer originator and beneficiary information for virtual asset transfers. This measure aims to prevent the use of cryptocurrencies for money laundering and terrorist financing.
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ShintoBlessing
Thu Aug 08 2024
The discrepancy between the FATF's 40+9 Recommendations and AMLD5 creates a regulatory grey area for cryptocurrency exchanges. Some EU countries may choose to adopt stricter regulations than what is mandated by AMLD5 to ensure compliance with international standards.
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charlotte_anderson_explorer
Wed Aug 07 2024
This approach reflects a cautious stance by EU regulators towards the rapidly evolving cryptocurrency landscape. They recognize the potential risks associated with digital assets and seek to mitigate them through robust regulatory frameworks.
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