CryptoBridge, a gateway to the BitShares digital assets exchange, has announced that with immediate effect, all existing customers and new crypto traders on the platform must submit their verification documents to use the platform. The move is part of plans to comply with the 5th EU Anti-Money Laundering Directive (AMLD5) scheduled to go live in January 2020, according to a blog post from the firm.
CryptoBridge Curbing Money Laundering
In an effort to operate in total compliance with the requirements of the AMLD5, CryptoBridge has made it clear that all users will now have to undergo strict know-your-customer (KYC) checks before using its platform.
As stated in its blog post, CryptoBridge says its primary objective has always been to promote decentralized finance both in a technical and jurisdictional sense, however, it firmly believes that complying with the AMLD5 is the best thing to do.
“While we still strive to present new challenges for international financial regulation, we are facing the 5th EU Anti-Money Laundering Directive (AMLD5) and will adjust our gateway services to pave the way for CryptoBridge moving forward,”
For those who are unaware, in June 2018, the new anti-money-laundering counter-terrorism-financing (AML/CTF) directive 2018/843 was published in the Official Journal of the E.U. and the regulation entered into force in July 2018, with application to begin from January 10, 2019.
Specifically, the primary objective of the AMLD5 is to fix existing loopholes in the financial system that makes it easy for bad actors to operate, by “tackling terrorists financing risks linked to anonymous use of virtual currencies and prepaid instruments, extending the scope of regulated entities, as well as professionals to adopt the latest solutions for AML/CFT.”
Not Sharing Users’ Data
According to the CryptoBridge team, the new AMLD5 is a good thing for the cryptospace, as it creates a legal status for bitcoin and altcoins, while also enabling them to become “viable and legitimate financial networks,” thus making the listing of security tokens easier.
At a time when people across the globe are increasingly getting concerned about how their personal information is stored, shared or used, CryptoBridge has assured users that it’s working closely with its partner, Fractal, to ensure all verification data sent to the platform are stored in compliance with the General Data Protection Regulation (GDPR), in a European data storage facility.
“CryptoBridge does not have access to any user data other than their UUID associated with successful completion of identity verification,” added the team.