EU Economics

European Union clamps down on bitcoin to curb terrorism

Voice Chronicle

The European Commission said in draft proposals that it plans to “strengthen controls of non-banking payment methods such as electronic/anonymous payments and virtual currencies and transfers of gold, precious metals, by pre-paid cards”, bitcoin-following-paris-attacks” target=”_blank”>IT Pro quoted the Commission in its report.

European Union interior and justice ministers agreed on Friday in Brussels to tighten checks on payment methods that may be conducted anonymously and might be used by terrorist organizations to finance attacks. Not only do mainstream consumers not understand the technology, but the potential for using bitcoin for criminal activities has spooked authorities. Aside from the anonymous payment, other methods can be used too, such as the pre-paid credit cards which can also be used without any possibility of tracking.

This seems right: the European Commission adopted an anti-money laundering package in May 2015, and it’s already started work on the overall assessment of the money laundering and terrorist financing risks that can affect the European internal market.

Digital cash was a key mode of payment in Silk Road – the virtual bazaar for illegal merchandise which the Federal Bureau of Investigation eventually closed down.

After the November 13 terrorist attacks which left 129 dead in Paris, the European Union has made a call for proposals that will curb terrorist funding through nontraditional monetary systems – including the virtual currency bitcoin.

When used in tandem with proper operation security, Bitcoin can be used to purchase items on the Internet – contraband included – without leaving behind a paper trail.

In response to the increase of anonymous software implementation of ISIL associates, European Union ministers plan “to curb more effectively the illicit trade in cultural goods”, reported Reuters.

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