AMLD5 in the EU Becomes Effective, Crypto Firms Start Migrating

On January 10, the 5th EU Anti-Money Laundering Directive (AMLD5) became effective. European crypto companies are currently in a changing regulatory environment with new realities.

AMLD5 has more stringent customer due diligence requirements. Some companies in the industry have already realized that their business models based on the key principles of crypto space should be brought into full compliance with the new rules.

Despite the fact that tougher amendments entered into force on January 10, 2020, EU member states are at different stages of its implementation. The approach to compliance with the Directive also varies from country to country, and some governments seek to expand their regulatory framework beyond what Brussels requires.

It has already become known that as a result of tightening regulatory rules, the Dutch crypto exchange Deribit leaves the EU and moves to the offshore zone. From February 10, 2020, the legal entity is changed, but the team and the managers remain the same. However, despite the move, certain changes will be made, since Deribit is interested in conducting legal business activities, and many customers are citizens of the EU countries. For traders who do not want to provide information about their identities, a limit of withdrawals up to 1 BTC or 50 ETH per day will be introduced.

Image courtesy of Be In Crypto