This week saw crypto enthusiasts in Germany take a stand to support the pre-eminent currency, Bitcoin (BTC), by projecting its logo on the exterior of the European Central Bank building with a message to “study Bitcoin”. This came after the collapse of major institutions such as Silicon Valley Bank and Signature Bank in the US, and it's certainly an eye-opening way to bring attention to the many advantages of cryptocurrency as a viable, reliable alternative.

At the same time, the European Parliament has also been busy putting into effect potential new rules and regulations to enforce KYC requirements for crypto-related services, as part of their Anti-Money Laundering and Countering the Financing of Terrorism draft bill. As part of this, cash and crypto payments of more than €7,000 (or €1,000 if identity is unknown) will be restricted. These new measures seem to be in preparation for the introduction of the Markets in Crypto-Assets (MiCA) bill that is set to take effect in 2024.

In an interview with Cointelegraph, Liam Murphy, Managing Director of EMEA at Wachsman, said that the AML-CFT bill is designed to combat money laundering, terrorist financing and the evasion of sanctions in the EU, though it is uncertain how cryptocurrency transfers between private individuals will be affected by the new regulations. Erwin Voloder, senior policy fellow at the European Blockchain Association, also stated his opinion that a “double standard is constantly applied to crypto payments”.

The questions then remain as to whether ‘imposing’ such regulations could be beneficial or detrimental to the cryptocurrency space. Primarily, is there a need for closer oversight and stricter regulation at this moment in time, or will this only serve to limit the potential of cryptocurrency and its related services? With answers still forthcoming, both crypto and traditional banking sectors will certainly be keeping a close eye on any further developments.



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