23 September 2015

The Evolution of Third Party Payment Providers and Cryptocurrencies Under the EU’s Upcoming PSD2 and AMLD4

Analysing the latest payments regulations, identifying gaps and consequences with recommendations to help clarify new policies.

The financial landscape has changed considerably over the last decade under the influence of new technologies and communication methods with the adoption of new legal frameworks bringing non-credit institution actors under regulation. However, third party payment providers and virtual currencies are two major new developments for which the legal framework is less clear.

The paper, “The evolution of third party payment providers and cryptocurrencies under the European Union’s PSD2 and AMLD4” analyses the regulation of third party payment (TPPs) providers and virtual currencies, and critically assesses current legislation and ongoing legislative initiatives for their inclusion of TPP’s. It also sets out the potential for the regulation of cryptocurrency in terms of combating money laundering and terrorist financing.

The research focuses on regulatory developments within the EU, namely the Payment Services Directive (PSD2) and the fourth Anti-Money Laundering Directive (AMLD4), but also includes an expanded view into the US and Asian markets.

by Nathan Van de Velde, Niels Vandezande, Peggy Valcke

  • KU Leuven Faculty of Law