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EU promises more Bitcoin control following Paris attacks

The European Union has promised to increase its control over anonymous and non-banking payment methods such as Bitcoin, in the light of the recent terrorist attacks around the world.

These can be methods of financing terrorism, the EU believes. Aside from the anonymous payment, other methods can be used too, such as the pre-paid credit cards which can also be used without any possibility of tracking.

The European Commission said in draft proposals that it plans to "strengthen controls of non-banking payment methods such as electronic/anonymous payments and virtual currencies and transfers of gold, precious metals, by pre-paid cards,” IT Pro quoted the Commission in its report.

On Tuesday, the European Commission laid out plans to assess the role of virtual currencies for nefarious purposes, stating: "Among the sectors under assessment, the use of virtual currencies will be subject to particular attention, as requested by the European Council of 26th January, 2015."

"Member states will have to comply with such measures or explain the reasons why they ask for derogations.” The EU will additionally produce "a list of countries which present some deficiencies in their anti-money laundering (AML) and terrorist financing regimes".

Other subjects on the agenda include plans "to curb more effectively the illicit trade in cultural goods.”

The anonymous digital currency Bitcoin is being heavily criticised as it is frequently used by criminals to pay for weapons and illegal narcotics online. It is also being used by hackers demanding ransom in Bitcoin in order to stop an ongoing DDoS attack.