European Union will introduce an enhanced system of rules of cryptocurrency exchange!

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European Union will introduce an enhanced system of rules of cryptocurrency exchange!

European Union will introduce an enhanced system of rules of exchange of cryptocurrency and online payments through the “risk of money-laundering and financing of terrorism”. The rules will affect online exchange platforms for Bitcoin and other cryptocurrencies. We remind that the cryptocurrency Bitcoin has broken another record price and rose to the level of 19 thousand dollars. Actually the price of one bitcoin is equal to 19.2 thousand dollars by 16th of December.

New EU rules, among a general:

— obligation of the bitcoin platform and cryptocurrency online wallets to identify users;

— introducing a limited use of prepaid-cards for payments;

— giving the investigating authorities the possibility of more widespread access to information, in particular to banking registers;

— providing the access to trust property for “persons with justified interest”.

The EU decision was taken at the wake of the rapid growth of Bitcoin’s rate, which has risen more than 1,700 percent for the current year. By far the most popular cryptocurrency Bitcoin has reached a value of 19 thousand dollars, and again broke its own record. Previously, the Bitcoin futures at the Chicago Board of options exchange has risen by 25%, exceeding 18 thousand dollars, after December 10, when the auction began. At the beginning in January the first auction rate of futures for cash was at the level of 15 thousand dollars.

In early December the Commodity Futures Trading Commission of USA allowed to start trading futures on Bitcoin. As by 7 of December, the market capitalization of Bitcoin exceeded $251 billion dollars. The same day the value of Bitcoin exceeded 15 thousand dollars. By 3 of December it became known that the first Bitcoin billionaires became brothers Winklevoss, who sued against Mark Zuckerberg.

The amount of cryptocurrencies is limited!

Generally it is possible to produce about 21 million bitcoins, however in the world today already there are about 16.5 million.

In addition to bitcoin, there are many other digital currencies, which differ in the method of cryptography, that is, each has its own unique encryption. The most popular of them: Ethereum – costs about 300, Dash — about 200, Bitcoin Cash — about 300, Litecoin — around 45 USD.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Cryptocurrency Trading and Binary Options

Cryptocurrencies have rapidly crashed, not only in the course of a person’s life but in the sphere of the financial market and investment activities. In spite of the initial skepticism regarding cryptocurrencies and Blockchain, these innovative currencies have become one of the most attractive investment opportunities to quickly turn a profit. However, many private investors don’t allow themselves to invest in this resource, first and foremost, due to the high cost of cryptocurrency. Due to this, we recommend that you consider specific trading alternatives, which enable you to earn a good profit off investments in cryptocurrencies. In particular, we will outline the simple methods for dealing with cryptocurrency rates and acquainted you, in detail, with the principle for trading cryptocurrency binary options.

How can you profit off of cryptocurrencies?

Before you begin trading on the binary market, we suggest investigating the types of approaches accessible to the average private investor speculating on cryptocurrency market? This not only enables you to select the most suitable and attractive trading method for investing, but it also allows you to gather information on the profitability of different methods for investment in the cryptocurrency market. Let’s begin with the most legal, regulated services:

At the end of 2020, American financial regulars decided to release futures and options contracts on the main trading platforms, the CME and the CBOE. However, these financial market speculatory tools are accessible only to a limited number of large system investors. Private cryptocurrency traders are enthusiastic about this fact, which is evidenced by the price of the leading cryptocurrencies. For working with this selection of trading tools, you need access to a large capital and citizenship in either an EU member state or the USA. Private investors rarely consider these resources as primary tools of investment for this very reason.

Digital wallets and exchanges are a more accessible option for investing in cryptocurrencies for private investors. Here, everything runs on the basic principle of currency trading, buy low, sell high. The investor’s profit is the difference between the asset price when bought versus the price when sold. Although the relatively simple function of the approach’s algorithm to trading, today, not all investors can take advantage of these resources. The issue is, that the activity of cryptocurrency traders lead to a dramatic increase in rate growth of electronic currencies. For example, Bitcoin hit a high of $20,000 per coin in 2020. Only a limited number of traders can afford the means necessary to invest in a cryptocurrency asset. The matter only becomes more disenchanting for the average online trader, after taking a closer look at the risks involved.

In addition to this, trades placed on the exchanges are accompanied with extremely high associated costs, such as commissions placing trades, exchange spreads, and withdrawal charges. In sum, this figure can reach up to 12% of the total investment capital. That kind of loss is a hard one to take, no?

This classic tool enables trading cryptocurrency assets online, which is undoubtedly attractive to online investors. Nonetheless, even though conducting operations on Forex is simple and relatively accessible, this approach has its own drawbacks for investors. The problem is, that here a longer holding period is necessary to earn a profit. Contracts, based on profitability figures, are dependent on the level of asset price change. In addition to that, on Forex more complicated approaching for market analysis are necessary.

As you see, today, the basic selection available of cryptocurrency investment tools is reasonably wide. We, in turn, would like to go into more detail regarding the most effective and profitable tool, binary options, which enable you to profit off a low-risk, high process liquidity, and financially accessible cryptocurrency trading regime.

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How do you trade cryptocurrency binary options?

Let’s begin imminently with an explanation of binary options and how to trade them on the market, which enables you to grasp the basic essence of the trading process when using this tool.

So, binary options are a form of exchange contract, in which classical regimes for earning profit on the financial market don’t apply. With these contracts, there is no direct purchase of an asset, instead, there is a time-limited rate position on the direction of price movement held on an asset. To put it simply, the market participant doesn’t close a purchase or sale of the base asset, but uses its price rate for future directional price fluctuation:

The main task is for the trader to close the trade during the right specific market movement, in the correct binary options movement time frame.

It is worth noting this financial tool’s high level of profitability, 85% is the average (the data on tool’s liquidity was taken from the broker Binomo), which can reach as high as 90%.

If it is the right forecast for the rate, the market participant can make up to 90% returns, however, if the market is forecasted in the wrong movement direction, they can lose 100% of the total rate. With that kind of trading speed, the trader themselves regulates based on the selected duration of the binary option (expiration), which can fluctuate in a range of 60 seconds to 24 hours.

How do you trade effectively with binary options?

With this base knowledge on trading with binary options unraveled, let’s move on to the practical application. So, what can you understand from the binary options trading algorithm in action is, that this tool has a specific mathematical negative expectation profit indicator. The difference between profit and loss when trading with binary options is an average of 15% for cryptocurrency assets, with this specific indicator it can be upwards of 88%!! Therefore, excess losing positions can lead to a loss in investment. In order to change this situation and indicator statistic, it’s vital to adopt a trading strategy for forecasting. These systems have the ability to compute statistics, which produce profitable positions up to 90% of the time. It is worth noting that no strategy produces results 100% of the time!

So, trading strategies for the binary options market have varied formats and approaches. The majority of them are structured based on economic and legal regulations on market activity. However, this strategy format is not suited for inexperienced traders, because highly specialized knowledge is necessary for them, as well as for trading cryptocurrencies. The reason for this is quite simple, electronic currencies are a decentralized tool without a central issuing body. Therefore, the resource price, in this case, doesn’t subscribe to basic economic laws, instead, it’s built on simple indicators, made up of the total means invested in the asset, the popularity among traders. To put it simply, cryptocurrencies are only worth what investors are prepared to pay at any given moment!

The solution for investors out of this problem is indicator strategies, which analyze the market and produce forecasts applicable to automatic market indicator recognition programs. These systems evaluate current cryptocurrency technical indicators and provide vital trading information for opening positions on the market.

The list of indicators, available on the market, includes several hundred, therefore using them isn’t difficult. Frequently, professional traders use simple mono indicator strategies or combination systems with a short list of analysis tools. For example, the oscillator lines of the simple MACD indicate the trend movement direction growth, enabling you to achieve very accurate cryptocurrency trading indicators:

The trading statistics for this simple strategy have indicators that produce successful results 85-90% of the time. Therefore, even a small loss won’t influence the market participant’s final trading result.

The classic resistance/support trading strategy is a great example for trading cryptocurrencies. This regime more accurately reflects the mood of investors on the market for electronic currencies, that enables you to open short-term rate contracts on more attractive terms. In this case, we recommend using a trading regime in the price fluctuation channel. For that, it is enough to set up the trend levels, which become the borders of the cryptocurrency price fluctuation channel. The rate formation signals, in this case, form the moment price rebounds from the border of the channel to the opposite level:

Taking into account the peculiarities of cryptocurrency asset exchange rate formation, that approach to market analysis and forecast generation is more effective for earning a minimum and stable profit.

You can become acquainted with a wider selection of effective trading systems on the our site at the EDUCATION section

Of course, trading systems can produce results, however, without specific knowledge of the trading process, an understanding of finance, and the electronic currency market, it will be reasonably difficult to grasp the intricacies of binary trading and achieve successful, and more importantly stable, results. For that reason, it’s vital to find time to expand both your practical and theoretical skills. The educational process can pass quickly with your broker’s professional educational materials, which are available with open access.

Once you’ve gained a complete understanding of all technical and theoretical principles for working with binary options, you can maximize the profitability, result stability, and effective trading operations of the main trading market indicators.

While analyzing binary trends, it is worth noting, that trading with this tool not only differs thanks to its simple technical process but also its accessibility to private traders. To use this tool, you need a minimal $10 capital, and the cost per contract is only $1. Despite the small size of the investment required, involved in the process, it’s worth considering the fairly strong profit indicators, all thanks to the profitability of short-term contracts, up to 90%, and also the regulated market position expiration period. Therefore, the dynamic capital growth is now a bit higher in comparison with classic speculative methods for the financial market.

As you see, today, binary options are the most accessible and easy method for making a profit on the market of cryptocurrencies. Here, investors receive attractive financial terms for trading, an accurate indicator of the procedural effectiveness, a very simple regime for earning profit, and also a relatively low capital risk indicator. In situations when the market is overbought, binary trading is one of the main approaches to working with cryptocurrencies as an investing resource.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Anti-money laundering and counter terrorist financing

Fighting money laundering and terrorist financing contributes to global security, integrity of the financial system and sustainable growth. Laws to combat money laundering and the financing of terrorism are designed to prevent the financial market from being misused for these purposes.

The European Commission carries out risk assessment in order to identify and respond to risks affecting the EU internal market. It promotes the adoption of global solutions to respond to these threats at international level. The European Union adopted robust legislation to fight against money laundering and terrorist financing which contributes to those international efforts. The Commission ensures effective application of this legislation by reviewing transposition of EU acquis and working with networks of competent authorities.

On 24 July 2020, the European Commission adopted a Communication to the European Parliament and the Council towards better implementation of the EU’s anti-money laundering and countering the financing of terrorism framework. This was accompanied by four reports:

  • Supranational risk assessment of the money laundering and terrorist financing risks affecting the Union. The annex, in form of a Staff Working Document under the Supranational risk assessment, is also available on this page under the section ‘Risk Assessment’.
  • Report assessing the framework for Financial Intelligence Units’ (FIUs) cooperation with third countries and obstacles and opportunities to enhance cooperation between Financial Intelligence Units within the EU
  • Report assessing the conditions and the technical specifications and procedures for ensuring secure and efficient interconnection of central bank account registers and data retrieval system
  • Report assessing recent alleged money-laundering cases involving EU credit institutions


It is essential that gatekeepers (banks and other obliged entities) apply measures to prevent money laundering and terrorist financing. Traceability of financial information has an important deterrent effect. The European Union adopted the first anti-money laundering Directive in 1990 in order to prevent the misuse of the financial system for the purpose of money laundering. It provides that obliged entities shall apply customer due diligence requirements when entering into a business relationship (i.e. identify and verify the identity of clients, monitor transactions and report suspicious transactions). This legislation has been constantly revised in order to mitigate risks relating to money laundering and terrorist financing. In 2020, the EU adopted a modernised regulatory framework encompassing:

Both instruments take into account the 2020 Recommendations of the Financial Action Task Force (FATF) (see MEMO/12/246), and go further on a number of issues to promote the highest standards for anti-money laundering and to counter terrorism financing.

​5th Anti-Money Laundering Directive (Amendments to the 4th Anti-Money Laundering Directive)

The 5th Anti-Money Laundering Directive, which amends the 4th Anti-Money Laundering Directive was published in the Official Journal of the European Union on 19 June 2020. The Member States must transpose this Directive by 10 January 2020.

These amendments introduce substantial improvement to better equip the Union to prevent the financial system from being used for money laundering and for funding terrorist activities.

These amendments will:

  • Enhance transparency by setting up publicly available registers for companies, trusts and other legal arrangements;
  • enhance the powers of EU Financial Intelligence Units, and provide them with access to broad information for the carrying out of their tasks;
  • limit the anonymity related to virtual currencies and wallet providers, but also for pre-paid cards;
  • broaden the criteria for the assessment of high-risk third countries and improve the safeguards for financial transactions to and from such countries;
  • set up central bank account registries or retrieval systems in all Member States;
  • improve the cooperation and enhance of information between anti-money laundering supervisors between them and between them and prudential supervisors and the European Central Bank.

Factsheet on the main changes of the 5th Anti-Money Laundering Directive

Background information – Proposal amending 4th Anti-Money Laundering Directive

The Proposal for a Directive amending Directive 2020/849 was presented by the Commission on 5 July 2020 in the context of the implementation of the Action Plan for strengthening the fight against terrorist financing adopted in February 2020 and of the Panama Papers revelations of April 2020.

  • Press release
  • Proposal for amending 4th Anti-Money Laundering Directive
  • Impact assessment (summary)
  • Impact assessment (full version)
  • On 19 June 2020, the Commission adopted a report on the application of Chapter IV of Regulation (EU) 2020/847 on information accompanying transfers of funds
  • On 24 July 2020, the Commission issued a report assessing the framework for Financial Intelligence Units’ (FIUs) cooperation with third countries and obstacles and opportunities to enhance cooperation between Financial Intelligence Units within th EU
  • On 24 July 2020, the Commission issued a report assessing the conditions and the technical specifications and procedures for ensuring secure and efficient interconnection of central bank account registers and data retrieval systems

Risk assessment

On 26 June 2020 the Commission published its first Supranational Risk Assessment Report as required by the 4th Anti-money Laundering Directive. The Commission assessed the vulnerability of financial products and services to risks of money laundering and terrorist financing. This risk analysis is conceived as a key tool to identify, analyse and address money laundering and terrorist financing risks in the EU. It aims at providing a comprehensive mapping of risks on all relevant areas, as well as recommendations to Member States, European Supervisory Authorities and obliged entities to mitigate these risks. This risk analysis support Member States and obliged entities when carrying out their respective risk assessments. On 24 July 2020, the Commission published its second Supranational Risk Assessment Report

EU list on high risk third countries

Based on Directive (EU) 2020/849, Article 9, the Commission is mandated to identify high-risk third countries having strategic deficiencies in their regime on anti-money laundering and counter terrorist financing. The aim is to protect the integrity of the EU financial system.

One of the pillars of the European Union’s legislation to combat money laundering and terrorist financing is Directive (EU) 2020/849. According to this Directive, banks and other gatekeepers are required to apply enhanced vigilance in business relationships and transactions involving high-risk third countries. The types of enhanced vigilance requirements are basically extra checks and control measures which are defined in article 18a of the Directive.

Further information:

Enhancing access to financial information by law enforcement

Terrorists and criminals have demonstrated their ability to transfer funds quickly between different banks, often in different countries, but lack of timely access to financial information means that many investigations come to a dead end. There is therefore a clear need to enhance cooperation between authorities responsible for combating terrorism and serious crime when financial information is a key part of an investigation.

The Directive (EU) 2020/1153 enhances the use of financial information by giving law-enforcement authorities direct access to information about the identity of bank-account holders contained in national centralised registries. In addition, it gives law enforcement the possibility to access certain information from national Financial Intelligence Units (FIUs) – including data on financial transactions – and also improves the information exchange between FIUs as well as their access to law enforcement information necessary for the performance of their tasks. These measures will speed up criminal investigations and enable authorities to combat cross-border crime more effectively.

  • A Staff Working Document on improving cooperation between EU Financial Intelligence Unitswas published on 26 June 2020. It summarises the results of a 2020 mapping exercise that was carried out by the Financial Intelligence Units under the FIU Platform that identifies obstacles to the access, exchange and use of information as well as obstacles to the operational cooperation between FIUs.
  • Staff Working Document on Compliance by cross border banking groups at group level

Supervision and regulatory technical standards

The Commission’s services work closely with the European Supervisory Authorities in the implementation of the AML/CFT rules. The joint committee of the European Supervisory Authorities on AML/CFT issues guidelines and opinions to help national competent authorities to understand the regulatory expectations.

As part of its legal obligation stemming from the 4th Anti-Money Laundering Directive the Commission has adopted Delegated Regulations in relation to the following regulatory technical standards that have been developed by the European Supervisory Authorities (ESAs)

The European Commission has adopted on 8 November 2020 an opinion, in exercise of its powers under the EBA Regulation, requiring the Maltese anti-money laundering supervisor (Financial Intelligence Analysis Unit) to continue taking additional measures to fully comply with its obligations under the fourth Anti-Money Laundering Directive.

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