EU to Tighten Rules for Crypto Exchanges and Wallet

EP's december agreement proposed closer regulation for virtual currencies, to prevent them being used for money laundering and terrorism financing.
20 April 2018   560

The European Parliament reported on the approval of the December agreement with the European Council, according to which a number of requirements are being introduced on the territory of the European Union aimed at strengthening control over cryptocurrencies in order to prevent their use in money laundering and terrorist financing. Corresponding amendments will be introduced in the EU Directive on money laundering combat.

In a bid to end the anonymity associated with virtual currencies, virtual currency exchange platforms and custodian wallet providers will, like banks, have to apply customer due diligence controls, including customer verification requirements. 
 

European Parlament Message

Also, the amendments provide stricter requirements for disclosure of information about the real owners of European companies, the use of prepaid cards, etc.

Criminal behaviour hasn’t changed. Criminals use anonymity to launder their illicit proceeds or finance terrorism. This legislation helps address the threats to our citizens and the financial sector by allowing greater access to the information about the people behind firms and by tightening rules regulating virtual currencies and anonymous prepaid cards.
 

Krišjānis KARIŅŠ

Co-rapporteur

The updated directive will come into force 3 days after publication in the official journal of the European Union. The EU member states will have 18 months to incorporate the new rules into their national legislation.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   197

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.