A Crypto Consortium sees the light of day
Dansk Krypto Konsortium (Danish Crypto Consortium, red.) is a group of danish blockchain companies that work towards a constructive regulation of blockchain technology and cryptocurrencies in Denmark. The consortium is lead by a working group under Nordic Blockchain Association and works with a goal of a structured implementation of the new AML/CTF EU directive 2018/843 (AMLD5) among other things.
Read more about AMLD5
As time progresses, the group will also be working with other regulatory initiatives that in some way has an influence on the activity of cryptocurrencies in Denmark.
The background of AMLD5
The European Commission has identified cryptocurrency exchanges and providers of so called ‘custodian wallets’ as essential stakeholders in controlling the access to cryptocurrencies. For that reason, the European Commission is trying to bring the aforementioned stakeholders under the scope of AMLD5 in an attempt to increase the likelihood that harmful cryptocurrency transactions such as money-laundering will be caught.
The Commission has established that cryptocurrency exchanges (such as Coinify and Coinbase) can be seen as electronic currency exchanges that are capable of exchanging between FIAT-currencies (kroner, Euro etc.) and cryptocurrencies (Bitcoin, Ethereum etc.)
The Commission views custodian wallet providers as close relatives to payment institutions that offer payment accounts, since these providers offer accounts with virtual currencies from which transactions in cryptocurrencies can be made.
The situation in Denmark
At the moment we are in a situation where blockchain companies are having a hard time operating in Denmark due to the lack of up-to-date regulation. In some cases, this may result in companies moving their businesses abroad, i.e. away from Denmark. The consequence of such may be less innovation, fewer jobs and inferior security for the end-user.
Regulation is an important part of the work of Nordic Blockchain Association since it is an essential step towards a wider and more mainstream adoption of the technology. Nordic Blockchain Association is a non-profit organization that also acts as a branch organization for danish (and in the long term nordic) blockchain companies.
With beneficial regulation we can:
- Ensure better terms and growth for the blockchain industry in Denmark.
- Increase the trustworthiness of the industry.
- Enhance security for the end-user.
- Avoid inadequate and inhibitory regulation.
- We promote a constructive dialogue on behalf of the industry.
- We assist in shaping the dialogue in a way that does not interfere with innovation in Denmark.
- We cooperate with the authorities – we see exchange of information as a crucial part in achieving a positive regulation in the future.
We keep an eye on the latest developments and what regulatory changes will affect the industry.
We cooperate with the authorities and other bodies. We help them understand and formulate positive regulatory changes i.e. laws.
We advice members of the working group internally and inform them of the latest developments, changes and tendencies with regards to regulation on a national as well as EU level.
We strive for:
- The EU AML-rules shall apply to digital/crypto exchange platforms.
- The EU AML-rules shall not apply to providers of “non-custodian software wallets”.
- A risk-based approach.