EU proposes stricter rules on Bitcoin, prepaid cards in terrorism fight
The European Commission proposed on Tuesday stricter rules on the use of virtual currencies and prepaid cards in a bid to reduce anonymous payments and curb the financing of terrorism.
Virtual currency exchange platforms will have to increase checks on the identities of people exchanging virtual currencies, such as Bitcoin, for real currencies and report suspicious transactions.
Under the Commission’s proposals the threshold for making anonymous payments with pre-paid cards was lowered to 150 euros ($167.28) from 250 euros.
“Member states will be able to get and share vital information about who really owns companies or trusts, who is dealing in online currencies, and who is using pre-paid cards,” EU Commission First Vice-President Frans Timmermans said.
Following attacks in Paris last November by Islamic State militants the EU executive said it would step up measures to cut off terrorists’ access to funds.
French authorities have proved that pre-paid cards were used by the Paris attackers.
This post was published at Reuters on Jul 5, 2016.