Even though crypto markets are currently under sale pressure, the virtual currencies are more attractive in a long term
The fifth European anti-money laundering regulation (AMLD5) has increased institutional interest in cryptocurrencies, Ulli Spanowski, the executive at the crypto trading subsidiary of Boerse Stuttgart, stated at the CryptoCompare London conference. He admitted that he had been himself surprised by the effect of AMLD.
“I didn’t see anything major happen as some banks and financial institutions could already do crypto trading. Yet, since the regulation came into force, there has been growing interest in crypto trading by some traditional players of financial market,” Spanowski said. AMLD5 regulation demands crypto companies based in the European Union to register with local regulators. Moreover, the companies must inform their clients on cryptocurrency environment and warn them about crypto trading risks.
Some crypto companies complied with the rules, yet some players moved abroad to leave the EU’s jurisdiction. They left for tax havens – Panama or British Virgin Islands.