Is Europe’s AMLD5 Already Outdated For Crypto?

Plus a new proposal for a "bitcoin vault"

Happy Monday, Blockfolians

The Lede

According to the European Parliament Research Service, EU regulators should have even more oversight into a broader range of crypto businesses than 2018’s often maligned Fifth Anti-Money Laundering Directive (AMLD5). The report argues that certain types of mining activity need more oversight, as well as suggesting that some crypto entities like crypto-to-crypto exchanges simply aren’t covered.

AMLD5 directive: an obstacle for the crypto sector? - The Cryptonomist

The report isn’t surprising. But it is a reminder that crypto is likely to get more, not less regulated as time goes on. Can key values of decentralization and anonymity survive the maturation of the industry as a whole?

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Highly Relevant Reading

  • Blockchain analytics continues to prove itself to be a booming emergent industry, with new entrant Huobi

  • Binance moves to compete with Deribit on mobile-based bitcoin options

  • Square has been approved to lend out funds to ailing small businesses via the new Paycheck Protection Program

  • As Telegram’s token continues to be blocked by legal trouble, one crypto exchanged focused on the offering shuts down


Community Commentary

One of the fundamental shifts of Covid-19? A prioritization of resilience over efficiency, according to Preston Byrne.
One bitcoin dev has released a workable proposal for on-chain storage (aka “bitcoin vaults”)

A Really Big Number We Should Be Paying Attention To

$6.7M

That’s the amount that miners stand to make on the other side of the bitcoin halving, down from ~$13.4m today. Of course this makes sense - it’s half, after all - but it’s important as we think through the implications to speak in specific terms.


Final Thought

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