European Union May Ban Anonymous Crypto Transfers
The European Union has proposed a ban on anonymous transactions that could affect cryptocurrency services by 2024.
EU Announces Upcoming Rules
In a new publication, the European Union wrote that “EU AML/CFT rules will apply fully to cryptocurrencies: all Crypto Asset Service Providers will have to apply EU rules, to stop cryptocurrencies [from being used] to launder money.”
Under the proposal, companies that process cryptocurrency transactions must record customer names and information.
The plan would see the EU create a central authority called the EU AML Authority (AMLA), which would unify rules across the financial industry and “close loopholes” for criminal activity.
In a related statement on Twitter, Commissioner Mairead McGuinness called cryptocurrency “one of the newest ways to launder money” and stated that these rules will apply to the entire crypto sector. “We will ban anonymous crypto wallets and make sure that crypto-asset transfers are traceable,” she concluded.
Will All Crypto Wallets Be Affected?
Though many headlines imply that the rule would affect all cryptocurrency wallets, it seems the rule would only affect custodial wallet provides such as exchanges and web wallets—that is, services that manage cryptocurrency on behalf of users.
It is unlikely that the policy can be enforced against non-custodial wallets, including the official wallets used by many crypto projects.
The United States has attempted to create similar regulation which would add surveillance rules for wallet providers. However, those plans were suspended when President Biden took office in January.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article
