The Czech Republic will introduce stricter supervision of cryptocurrencies than that required under the pan-European anti-money laundering regime.
According to a report published in the local newspaper Hospodářské Noviny, the Czech Republic’s implementation of the Fifth European Union Anti-Money Laundering Directive (AMLD5) is likely to impose stricter requirements on cryptocurrency firms.
As a confirmation of the upcoming tough measures, Hospodářské Noviny notes that Czech regulators plan to impose a large fine – up to half a million euros – on cryptocurrency firms if they do not register their activities with the national Trade Licensing Authority.
Such a measure goes far beyond the requirements of AMLD5, which came into force in July 2018 and established a revised legal framework for EU financial regulators to regulate cryptocurrencies and reduce the risks of money laundering and terrorist financing. AMLD5, in particular, expands regulatory oversight for cryptocurrency exchanges and wallet operators, as well as provides stricter transparency requirements aimed at anonymous payments.
Although the publication does not disclose the schedule for the official implementation by the Czech government of both AMLD5 and the additional rules, EU member states are required to include the directive in their respective national laws by January 20, 2020. The report also notes that the proposed tightening of the regime will affect firms for which the new EU laws do not require careful supervision. Hospodářské Noviny claims that such changes can jeopardize the competitiveness of the country’s cryptocurrency sector.
More and more European countries are indicating their position on the regulation of the cryptocurrency industry. Last month, the French regulator announced
the imminent publication of rules for cryptocurrency companies, and in the spring Finland began
regulating operators of cryptocurrency services