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EU has Formed a Final Deal on Anti-Money Laundering Legislation Through Crypto Currency
Summary: The European Union has concluded upcoming legislature despite concerns threatening privacy and growth in the industry. The proposal states that even identity needs sharing for all crypto transfers. This doesn't apply if it's between two regulated digital wallet providers, but private wallets must be transparent about their activity. This proposal has been three months in ...
The European Union has concluded upcoming legislature despite concerns threatening privacy and growth in the industry. The proposal states that even identity needs sharing for all crypto transfers. This doesn't apply if it's between two regulated digital wallet providers, but private wallets must be transparent about their activity.
This proposal has been three months in the making, but after an hour of conversation this morning, regulators have reached a consensus. EU Parliament Member Ondřej Kovařík on Twitter posted, "EU institutions have found a provisional political agreement on the Transfer of Funds Regulation. I believe it strikes the right balance in mitigating risks for fighting money laundering in the crypto sector without preventing innovation and overburdening businesses."
Kovarik went on to say in an in-person interview that the new proposal strikes a "good balance" that would not prevent innovation. "It will allow the further development of crypto in Europe."
This scares some crypto users, who are drawn to the decentralized currency due to its' autonomy. @SimplyBitcoinTV on Twitter described the proposal as "Very dangerous language." The general concern appears that this is one step closer to an outright ban is possible, with one user saying, "It is a lot easier to regulate something that you know the location of."
Other Twitter users are already plotting ways to hide from the potential regulation before it takes effect. @satsngin asked, "is the law legal as of today, or how much longer do we have to take our bitcoins from the exchange? I just bought a ledger today" It appears he is trying to get his coins off the soon-to-be transparent exchanges to remain anonymous.
The proposed regulations would strictly regulate almost all aspects of crypto assets from the end of 2023 for the entire EU, which is 400 over million citizens. According to a recent survey of the European Central Bank, 10% of the EU population hold crypto assets.
Pro crypto Germany has already taken a stance against the proposal, as their State Secretary Florian Toncar published an article. This letter sets out the position of the German Federal Ministry of Finance on two short but very firmly formulated pages. The anti-regulation report highlights concerns with new regulations and can give hope to EU citizens that more countries may follow suit.
Author: Garrett Meifert
Tags: European Parliament,European Union,Regulation
Link: EU has Formed a Final Deal on Anti-Money Laundering Legislation Through Crypto Currency [Copy]
