According to Cointelegraph, the EU's fifth anti-money laundering directive came into effect on July 9. The measures in the directive will set a new legal framework for European financial regulators to regulate digital currencies to prevent money laundering and terrorist financing.
The European Commission said in a press release that the new rules set stricter transparency requirements to use “anonymous payments for prepaid cards” and “virtual currency exchange platforms” for money laundering or terrorist financing purposes.
The European Commission said that the fifth anti-money laundering directive also increased cooperation and information exchange between anti-money laundering (AML) and prudential regulators (including the European Central Bank).
The committee stated that in order to ensure proper protection against the possible illegal use of digital currencies, authorities should be able to observe how they are used:
For the purposes of anti-money laundering and counter-terrorism financing (anti-money laundering/counter-terrorism finance), the competent authority should be able to monitor the use of virtual currency through obligatory entities.