February 4, 2023

AMLD5 will displace the owners of dirty bitcoins from the crypto industry

AMLD5 will displace the owners of dirty bitcoins from the crypto industry

Bitcoin status is ambiguous: it is recognized as a means of payment in Japan, property in the USA, unit of account in Germany. Other countries, in particular Russia, have remained aloof and regard cryptocurrency as a tool for conducting illegal transactions.

The charges against Bitcoin are not unfounded. Indeed, transaction transparency is not only an advantage of the Bitcoin blockchain, but also a way to track the path of dubious coins from address to address. As a result, buyers do not even realize that cashing out a cryptocurrency with a tarnished reputation, they become, if not accomplices, then witnesses of crimes.

Illegal coins

Black market dealers use BTC in illegaltransactions related to human trafficking, drugs, weapons, precious metals, counterfeiting. This cryptocurrency most often becomes the object of theft and extortion. Then the criminal coins go into circulation.

There are black lists of addresses where initiallydirty bitcoins get caught. The following addresses, through which coins travel further, are easily tracked. So the cryptocurrency is outlawed, and the structures for combating financial crimes see the entire cryptocurrency market as a big money laundering machine.

Nevertheless, it is impossible to eliminate the cryptosystem. Bitcoin has already become part of the economy and it is time to introduce rules for its legal use. Otherwise, the long-awaited institutional investors will not enter the game, and authoritative commissions, for example, CFTC in the USA, will not approve ETFs for cryptocurrencies.

Bitcoin purity issues are dealt withFATF employees - an anti-money laundering organization. Soon, every bitcoin holder will somehow face the problem of the origin of their own coins.

By the way, the dubious sources of BTC is one ofpossible reasons for blocking user accounts on exchanges with mandatory verification. At least when traders make a deposit in this cryptocurrency.

AMLD5 for EU countries and not only

A new era of cryptocurrency market control01.10.2020 will come with the introduction of AMLD5, or the Fifth EU Directive, developed taking into account the existence of cryptocurrencies. The law is aimed at combating terrorism and money laundering. Approved by the EU Commission, the European Parliament, the Council of the EU and the FATF.

Virtual assets for the first time received legaldefinition as a digital value that can be stored, transferred and sold, despite the non-recognition of the legal means of exchange in several countries.

All cryptocurrency trading platforms - exchanges, exchangers, wallets - are required to comply with the AML (anti-money laundering) and KYC (know your client) rules:

  • Verify users according to AML and KYC requirements;
  • Track suspicious transactions and report to authorities;
  • Keep track of transactions involving non-EU countries;
  • Provide customer data to authorities;
  • Participate in the compilation of user wallet registries;
  • Require identification of holders of prepaid cards for more than 150 € cards.

Persons reporting to the authorities about money laundering are promised anonymity.

KYC and KYT legalize bitcoins

AMLD5 implementation tools include Know Your Customer and Know Your Transaction.

KYC - the procedure for identifying customers whouse the services of a provider and confirm the legality of their funds. However, KYC fixes that a person is only at a certain moment is a law-abiding taxpayer.

This flaw is intended to reveal the KYT procedure,or “Know your transaction”, with which the transfers of bitcoins will be divided into legitimate and illegitimate. Only a few development companies work on transaction tracking software, but they serve the B2B sector. Our traceer.co service is available to everyone, including individuals.


1. Soon the doors to enter the world of cryptocurrencies will begin to close, however, as well as to exit.

2. Bitcoin traders will find it increasingly difficult to evade taxes.

3. Market prices for cryptocurrencies may drop significantly - before institutional investors enter the industry.

Upcoming changes will affect EU countries, of whichThe UK does not support the Fifth Directive. For operations with dirty bitcoins in countries that do not recognize cryptocurrency, BTC holders are not yet liable.

We are pioneers in the B2C segment, but hopethat there will be more services for checking bitcoin transactions, which means that the cryptocurrency market will become even more transparent. People will be able to find out the origin of not only bitcoins, but also altcoins.