It seems as the love/hate relationship traders have with bitcoin exchanges might be taking a turn for the worse. EU regulators are now preparing for increased regulations regarding the cryptocurrency. This is in response to some reports of ISIS was using bitcoin to move money to help fund the attacks in Paris last November. This is precisely the reason that the regulators and governments are concerned about Bitcoin transactions. The anonymity of Bitcoin makes it a preferred means of moving money for terrorists and criminal enterprises. Proponents of Bitcoin site the anonymity of Bitcoin as a necessary means of protecting individuals’ privacy rights.
Bitcoin Exchanges Deal With Anonymity
The question remains to what levels government will restrict anonymous transactions and how much this will impact the use of a crypto-currency itself. AML or Anti-Money laundering is one of the primary tools governments use to combat terrorism and crime. This is why the first line of defence would be the Banks and Financial Institutions. Regulations in many countries require that the movement of funds on the part of their clients be traced back to the same bank of origin and without a doubt not to allow the flow of funds to any third parties.