Strengthening the Control over Cryptocurrencies
What Does the EU Want to Get from Such Solution?
The rapid distribution of cryptocurrencies among the population forced the governing bodies of the European Union to take quick solutions concerning their regulation. Exactly legislative obstacles have not let realize a full potential of bitcoin. Now, online platforms that give an opportunity to make transactions in cryptocurrency must imply user-identification and establish restrictions on prepaid-cards.
Goals of the EU
The main goal causing such strict decisions is money laundering. It is quite difficult to control cryptocurrencies and some users of web platforms managed to benefit from this. Due to this, the EU Government intend to improve:
- transparency of transactions;
- verifiability of transactions;
- security of executed transactions.
This decision was made because of the rapid growth of the bitcoin rate that exceeded 1700% last year. Time shows that the measures adopted had a positive impact, as the cryptocurrency rate is not so unstable anymore. An only check allowed to deter the significant number of offenders who actively made transactions in bitcoin from the financing. The crime prevention system does not stand still. Due to the European officials’ efforts, it is possible to legalize cryptocurrencies, which will have a positive impact on its popularization among the population.
For ordinary users, this is an increased security of transactions and cost minimization. Only the registered users can pay by prepaid-cards, so the likelihood of being deceived will be reduced already in the near future.