Cryptoasset Exchanges

Germany is obliged to implement the 5MLD by 10 January 2020. The recently published Draft now provides changes that comply with the requirements of 5MLD and - in line with the typical German gold-plating approach - partially go beyond the European regulatory framework. The Draft mainly concerns amendments to the Anti-Money Laundering Act (Geldwäschegesetz – "GwG"), but also (complementary) amendments to the German Banking Act (Kreditwesengesetz – "KWG").

In April 2019, the UK government opened its consultation on transposing the Fifth Money Laundering Directive ("MLD5") into national law by the 10 January 2020 deadline for transposition. MLD5 changes include, among other things, requirements for cryptoasset exchanges and custodian wallet providers. The “gold-plating” of MLD5 that the UK government is considering has ramifications for virtual currency exchanges and custodian wallet providers; the FCA is seeking views on this approach.