In what is being billed as a counter-terrorism move, the EU is proposing stricter rules on digital currencies and prepaid accounts. The EU signaled such a move last November, after French authorities determined that prepaid accounts were used by terrorists in the Paris attacks. The rules are also designed to create greater transparency and curb tax evasion in light of the Panama Papers.
The proposed rules include:
- lowering the threshold for anonymous prepaid card payments to 150 euros (from 250)
- greater sharing among member states of information on companies and individuals using digital currencies and prepaid cards
- increased transparency on transactions converting funds from digital currencies such as Bitcoin to mainstream currencies
- higher levels of scrutiny on funds flows involving countries deemed to have insufficient money laundering, anti-terrorism and other controls.
MasterCard says it supports the proposals.