The EU Council: "Virtual currencies should not be confused with electronic money"
The EU amends the current directives on the regulation of the cryptocurrency In April 2018, the deputies of the European Parliament voted for the amendments to the EU Directive 2015/849 of the European Parliament and the Council of May 20, 2015 on "the bringing the crypto-currency under more stringent regulation."
The main changes are devoted to eliminating the "risks associated with virtual currencies" by taking measures to reduce anonymity for both trading in cryptocurrency and for cryptocurrency transactions.
Suppliers of exchange services between virtual currency and fiat , as well as wallet`s service providers for cryptocurrency, will be required to identify suspicious activities. The Directive states that the authorities should be able to control the use of crypto-currency through these platforms, and national financial investigating institutions should have access to information that allows them to link crypto-addresses with the identifiers of their owners.
At the same time, the EU Council states that "virtual currencies should not be confused with electronic money."
Undoubtedly, electronic money differs significantly from cryptocurrency at least in that the issue of electronic money is possible only by those who received indulgence (in the form of a license or other authorization document). The issuer undergoes a thorough check by the regulator before issuing its money, while anybody who has mastered the knowledge of blockchain programming can create his own crypto. The state inevitably had to come to the necessity of strict control over the circulation of the cryptocurrency, because the anonymity of transactions is a great temptation to withdraw large amounts of real money out of the sight of the state. As an example, the recent news about the huge sums that the yakuza did deduced through cryptocurrencies.
In this regard, the decision of the Ventureon team to turn to the issue of electronic money on the basis of blockchain technologies looks extremely balanced, including a legal point of view. After all, the tightening, which was mentioned earlier, will not affect electronic money, and, consequently, VNN owners will be able to freely use their electronic money, without fear of close scrutiny by the controlling bodies.