The Czech Republic will introduce tighter regulation of cryptocurrencies than the EU requires

The Czech Republic will introduce stricter cryptocurrency surveillance than is required under the pan-European anti-money laundering regime.

According to a report published in the local edition of 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 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 companies if they do not register their activities with the national Trade Licensing Authority.

This measure goes far beyond the requirements of AMLD5, which entered 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 more stringent transparency requirements for anonymous payments.

Although the publication does not disclose a timetable for the official implementation by the Czech government of both AMLD5 and 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 new EU laws do not require close supervision. Hospodářské Noviny claims that such changes may jeopardize the country’s cryptocurrency sector competitiveness.

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More and more European countries are indicating their position on the regulation of the cryptocurrency industry. France’s regulator said last month
about the imminent publication of rules for cryptocurrency companies, and in the spring of Finland began
regulate cryptocurrency services operators.