Czech Republic imposes tough rules

According to local media, the Czech Republic will introduce stricter cryptocurrency supervision than is required under the European Anti-Money Laundering (AML) rules established in Brussels.

In particular, 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.

These measures went beyond the requirements of the Fifth EU Anti-Money Laundering Directive, which entered into force in July 2018 and was updated to regulate cryptocurrencies and reduce the risks of money laundering and terrorist financing (CFT).

AMLD5 significantly expands the regulatory oversight area of ​​crypto exchanges and wallet providers and introduces more stringent requirements regarding the transparency of anonymous payments.

According to a local newspaper, the new rules of Czech lawmakers will also apply to companies for which EU regulations do not require close supervision. Thus, tightening measures would jeopardize the country’s cryptographic sector competitiveness.

This is not the first time that AMLD5 interpretations in different countries go beyond the scope of the directive.

In February, the Cyprus Securities and Exchange Commission proposed the addition of additional areas of cryptocurrency activity under the AML / CFT, which were not originally included in the provisions of AMLD5.

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