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Digital Currency regulation heats up in EU as law seeks to identify Bitcoin Users and End anonymity

European Union has been an ardent supporter of cryptocurrencies and has even proclaimed that they would be interested in formulating cryptocurrency of their own. The move was a preemptive measure to catch up with the developments in the fintech sector and also bank on the advantages of cryptocurrencies in modern Financial services domain. However, EU has decided to take some harsh steps to combat terrorism which includes banning of transactions greater a particular value that is subjective to the country. This way they would be able to ensure that terrorism funding is put on hold as they would be able to track online transactions.

This has eventually led us to the point where EU has started considering possible ways to regulate Bitcoin transactions. The plot thickens as this would mean identifying Bitcoin users, tracking transactions and doing away with anonymity. Let’s look into the details of how EU is planning to pursue the project:

The twist in the story:

The European Commission published the directive to monitor transactions and promote cashless transactions last July. The proposal has come up for review and the parliament had two options:

  1. To accept and approve the proposal
  2. To push for amendments that would fit the case better

In an interesting turn of events, the parliament went for an amendment to include Bitcoin and cryptocurrency wallets in the purview of the directive.

Regulating Digital Currency Businesses:


This move would mean the focus would shift on Bitcoin and cryptocurrency wallet companies and would essentially require the commission to monitor the transactions at the expense of anonymity. This was evident from the parliament’s quote about their decision:

“Terrorist groups are thus able to transfer money into the Union’s financial system or within virtual currency networks by concealing transfers or by benefiting from a certain degree of anonymity on those platforms”

However the positive aspect of the entire exchange was that the parliament is cognizant how regulations would affect the cryptocurrencies and are prepared to take a balanced approach towards the digital asset class.

Ending anonymity:


After the Paris attacks in 2015 and incidents where the assailant demanded the ransom in Bitcoin, EU government has become very proactive in monitoring illicit activities that are facilitated through Bitcoin. Following the survellaince,  Europol released a report in which it explicitly stated that there was no evidence found linking terrorist activities to Bitcoin financing. Nonetheless, EU is clearly bent on tracking assets through cryptocurrency and end the privilege of anonymity that the currencies offer. Growing acts of terrorism have been given as a prime reason for the decision.

Big banks’ investment creates ‘Ripples’ in Blockchain

The third week of September has seen further mainstream adoption of the blockchain Technology.  State authorities and the congress have set into motion plans to draft cryptocurrency favorable legislations. While the central idea is to understand and regulate the currency, studying the underlying technology is also in focus. Commercially distributed ledger based startups have been on the rise and are gaining good traction.  Pretty recently Ripple has received its series B funding to progress its hassle-free settlement idea. Let’s look into how this week, various Blockchain ventures are kicking off:

Ripple receives $55 Million in Series B:


Distributed ledger settlement startup Ripple has raised $55m in venture capital from a mix of financial industry heavyweights. Participating in Ripple’s Series B round are Standard Chartered, Accenture Ventures, SCB Digital Ventures, the venture arm of Siam Commercial Bank and SBI Holdings. Additional investors include Santander InnoVentures, CME Ventures, Seagate Technology and Venture 51. The growth trajectory indicates that the settlement startup will move out of its San Francisco headquarters. Much of those funds are for expansion projects including sales and marketing. However, it is distinct that some of the funds could also fuel new acquisitions. Ripple president and COO Brad Garlinghouse told:

“This gives us a strong balance sheet to also consider acquisitions. There are a lot of small players doing something interesting. Historically, we wouldn’t be interested, but going forward we may be.”

KPMG’s New Blockchain Services Suite:

Global accounting firm KPMG yesterday launched a suite of tools designed to help banks and major financial services firms. The tool will help them build blockchain in a compliant way. The Amsterdam-based accounting firm generated $24bn revenue last year. It now expanded its partnership with Microsoft to integrate with its blockchain-as-a-service toolkit.

 India’s Wipro joins Blockchain research:

India’s third-largest software and IT firm Wipro Ltd., has established a blockchain research facility in India’s IT capital of Bangalore. The IT giant is looking to develop real-world applications and software based on distributed ledger or blockchain technology.

Sydney Stock exchange confirms Blockchain platform for instant settlement:


The Sydney Stock Exchange (SSX) has confirmed its project to build a public blockchain platform. This will drastically reduce settlement times of trades and equities. The new blockchain settlement system will place itself as a low-cost alternative to the current clearing and settlement system. This clearing platform belongs to the Australian Securities Exchange (ASX). Unlike its competitor ASX which is using a closed blockchain-based settlement system the SSX will work on a public ledger.