Irish Gov't Approves Anti-Money Laundering Bill Affecting Cryptocurrency

The Cabinet, the executive organ of the government of Ireland, has approved a bill that would give effect to the European Union Fifth Anti-Money Laundering Directive, the Irish Times reported Jan. 3.The directive - which came into force on July 9, 2018 - sets a new legal framework for European financial watchdogs to regulate digital currencies in order to protect against money laundering and terrorism financing.

Specifically, the directive will extend the scope to crypto platforms and wallet providers, end the anonymity of bank and savings accounts, and improve information exchange among authorities.

That would unlock much of the potential innovation of blockchain by allowing parties to create automated agreements, including direct transactions in these currencies, instead of having to use a cryptocurrency as a proxy.

Crypto-friendly fintech startup Revolut obtained an EU banking license through the Bank of Lithuania.

Revolut's users in the United Kingdom, France, Germany, and Poland are expected to get a "true current account and a non-prepaid debit card.

" Additionally, users' deposits will also be covered up to €100,000 under the European Deposit Insurance Scheme.