Jacek Czarnecki is an attorney at Warsaw-based law firm Wardynski & Partners, where he specializes in areas including FinTech, digital currencies and blockchain. In this opinion piece, Czarnecki discusses a new proposal in the European Union aimed at terrorist financing, and its potential larger implications for the blockchain sector. The European Commission this week adopted a legislative proposal meant to bring virtual currency exchanges and custodian wallet providers under the scope of the EU’s Anti-Money Laundering Directive. This step should have been expected, as it has been clear that the European Commission wanted the AML regulatory framework to be extended. However, the importance of the proposed laws still can go beyond AML regulations….
Bitcoin has always been a thorn in the side of financial regulators and policymakers. The Financial Stability Oversight Council voiced their concerns over using cryptocurrencies earlier today. While Bitcoin is becoming more popular, financial instability is looming. By the look of things, this will lead to even stricter Bitcoin regulation in the US. It is no surprise to find out US regulators are still not sold on Bitcoin by any means. A group of regulators, which include the Treasury Department, the Fed, and the SEC, have voiced their concern over the usage of cryptocurrency. Or to be more precise, they seem worried about the growing popularity of Bitcoin as a payment method, since it operates beyond their control. US Regulators Still Dislike Bitcoin Over the…
The National People’s Congress, the national legislature of China, has released draft text for a civil law code that, if implemented, would provide a legal definition for virtual property. Following the announcement yesterday, reports began emerging that the definition could extend to blockchain-based assets including bitcoin and other digital currencies, with such speculation being set off by communications from ChinaLedger, a China-based blockchain consortium and local OTC trading firm BTCKhan. However, ChinaLedger’s legal lead, Broad and Bright partner Roland Sun, as well as other China-based sources, are now asserting that the text in question contains no specific reference to digital currencies or bitcoin. In interview, Sun said the law is rather designed to…
Poland’s Ministry of Digital Affairs is taking steps that may find it promoting digital currencies and blockchain technology. The agency announced an expansive digitization plan last week that comes amid a broader drive among European regulators to understand the emerging tech. Called “From paper to digital Poland”, the effort will seek to promote digital public services, the development of cashless solutions and the implementation of electronic identification (eID). Notably, one of the areas of focus will be “blockchain and cryptocurrencies”, a program that aim to “find regulatory, legal and economic solutions” that will make it possible for digital currency projects to compete in the European nation. Potential rules, while in…
A major financial oversight body within the US government created in the wake of the financial crisis has identified bitcoin and distributed ledger systems in general as a potential systemic risk. The Financial Stability Oversight Committee (FSOC) said in the new report released yesterday that the technology represented an innovation that “appear[s] poised for substantial near-term growth” and that it is reflective of a shifting landscape that merits attention from regulators. As a broad recommendation, the committee said that regulators should prepare to adjust accordingly if the technology sees broader adoption or outright supplants certain market intermediaries. The issues identified focus on the lack of experience with these systems among participants in…