While the the Anti-Money Laundering Directive (AMLD4's regulatory framework, the Payment Services Directive (PSD2) and EU), are a step in the right direction in regulating digital currencies in terms of tackling money laundering and terrorist financing, certain aspects remain unclear and need further attention, according to a new paper titled, "The evolution of third party payment providers and cryptocurrencies under the European Union's PSD2 and AMLD4". Regulators should address outstanding ambiguities, harmonise the the Anti-Money Laundering Directive (AMLD4's legal frameworks and avoid a nationalist approach to virtual currencies. Financial practitioners should look beyond disruptive forces and focus attention on the need for compliance and rather than wholesale dismissal of virtual currencies.
While the EU's regulatory framework, the Payment Services Directive (PSD2) and the Anti-Money Laundering Directive (AMLD4), are a step in the right direction in regulating digital currencies in terms of tackling money laundering and terrorist financing, certain aspects remain unclear and need further attention, according to a new paper titled, "The evolution of third party payment providers and cryptocurrencies under the European Union's PSD2 and AMLD4". Regulators should address outstanding ambiguities, harmonise the EU's legal frameworks and avoid a nationalist approach to virtual currencies. Financial practitioners should look beyond disruptive forces and focus attention on the need for compliance and rather than wholesale dismissal of virtual currencies.