Why EBA Proposals Would Set an Absurd Precedent for Bitcoin Startups

Adam Vaziri is the founder of Diacle, a “finreg” compliance and legal consultancy based in London and Hong Kong, and a member of the UK Digital Currency Association.

In this opinion piece, Vaziri discusses the European Banking Authority’s new proposals for digital currency regulation and why they could make starting a bitcoin exchange more onerous than opening a bank.

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The European Banking Authority (EBA) wrote an opinion on the application of its 4th Anti-Money Laundering Directive (4AMLD) to virtual currency exchanges and wallets last week.

A response to recommendations from the European Commission, the EBA’s remarks notably mention that VC exchanges and wallets operating in multiple countries in the EU “may […] be required to be registered or licensed in each Member State in which they intend to provide VC-related services”.

The seemingly small aside in the nine-page response is notable, as such a measure would be akin to the state-by-state registration process that VC exchanges have to do in the US.

This is due to the fact that there are no passporting rights granted under 4AMLD – understandable, as the regulations are not designed to facilitate the movement of goods, services or capital, but are simply motivated by the

Read more ... source: TheBitcoinNews

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