Home News New EU proposal looks to tighten regulations for sending cryptocurrency

New EU proposal looks to tighten regulations for sending cryptocurrency


The European Commission of the EU intends to dramatically tighten the rules for cryptocurrency transactions. Companies that transfer Bitcoin, as well as other cryptocurrencies, required to collect information about who receives and sends them.

These measures, according to officials, should help in the fight against money laundering using cryptocurrencies. As well as minimize the risks of financing terrorist organizations.

As pointed out in the European Commission, the new rules should ensure full transparency of transactions of cryptocurrencies. With their help, it will be possible to track and prevent the use of digital assets to launder illegally obtained funds.

Thus, the goal of the new law is to improve the detection of suspicious transactions and activities. As well as to close loopholes used by criminals to launder illegal proceeds or finance terrorist activities through the financial system.

“Money laundering is a clear threat to citizens, democratic institutions and the financial system. The magnitude of the problem cannot be underestimated and loopholes for criminals to exploit must be closed”, said Commissioner for Financial Services, Financial Stability and Capital Markets Union Mairead McGuinness.

Companies required to collect customer data

Any of the companies working with cryptoassets now required to collect customer data. This is his name, date of birth, account number. As well as the name of the person to whom he is sending the transfer in cryptocurrency. Also, companies required to check if the user has provided all information about himself.

The provision of anonymous wallets for transactions also prohibited. This is a logical step on the part of the authorities, since anonymous bank accounts already prohibited. Now anonymous wallets are waiting for the same.

Coordination and cooperation between the authorities in the EU member states and a new body for combating illicit funds will also strengthened.

Such measures created in order to maintain a balance of interests of the banking industry, representatives of cryptocurrency platforms and regulators, according to representatives of the European Commission.

In their opinion, the rules will help the cryptocurrency economy develop. As it will comply with the existing regulatory framework of the European Union.

Currently, the rules established in the EU regulate the activities of only a number of categories of payment service providers. The proposed changes will expand their effect.

Can we forget about the anonymity of cryptocurrency transactions in the EU?

All the rules developed by the European Commission now submitted to the European Parliament. Where they will be discussed. If successfully adopted and approved by the EU states, the rules regarding transactions with cryptocurrencies will apply throughout the European Union.

As a rule, such initiatives considered within a year or two. So their implementation will take place no earlier than 2023, but possibly even earlier.

If they adopted, it will be possible to completely forget about the anonymity of cryptocurrency transactions in the EU. However, methods can be developed that still allow maintaining the anonymity of cryptocurrency transactions to a certain extent.

The struggle between the bureaucracy, seeking to put under total control everything related to cryptocurrencies and the desire of the crypto world to remain free, continues.

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