Czech Republic is on track to exceed the EU’s directive on cryptocurrency firms, to enhance the country’s Anti-Money laundering (AML) policy, local newspaper Hospodářské Noviny reports today.
Financial regulators in the Czech Republic is set to redefine the Fifth AML Directive (AMLD5) on cryptocurrencies as formulated by the European Union, to ensure crypto trading platforms within its environs do not indulge in fraudulent activities.
European Countries were urged by the EU Commission via the Fifth AML Directive (AMLD5), to provide transparency requirements which focus on the use of anonymous payments through prepaid cards and virtual currency exchange platforms, to curb money laundering or terrorist financing within Europe.
“The 5th Anti-Money laundering directive also increases the cooperation and exchange of information between anti-money laundering (AML) and prudential supervisors, including with the European Central Bank,” Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said.
The Czech’s measure has gone a step further beyond what is stipulated by the European Union as enforced mid last year, which set up a legal framework for financial watchdogs in Europe, to regulate crypto exchanges and wallet providers to protect against fraudulent activities.
Cryptocurrency trading platforms in the Czech Republic are urged to comply with this stern measure and register their company with the national Trade License Office, or face the penalty of a fine worth 500,000 CZK (appr. $21,698).
Although the report did not state the deadline crypto exchanges are expected to comply with this directive, countries within Europe are required to abide by the AMLD5 regulation by January 20, 2020.
Additionally, the report also indicated that the new Czech Republic’s AML measure might affect companies that are not crypto-related.