As regulatory concerns about the $2.1 trillion crypto sector grow, lawmakers of the European Union have voted in favor of outlawing anonymous crypto transactions.
The EU Is About to Strip the Crypto Industry of Its Anonymity
According to reports, more than 90 lawmakers voted in favor of the proposal. The officials expressed their concerns about the possibility of crypto upsetting the stability of financial markets and their role in the facilitation of crime.
The ECON and LIBE committees of the EU parliament have voted in favor of crypto exchanges being required to obtain, hold, and submit information on those involved in transfers.
Tighter AML Requirements
In addition to these measures, both senders and recipients of crypto transactions of any value (as opposed to the previous €1,000 condition) will be required to meet anti-money laundering (AML) requirements. This also applies to transactions with unhosted or self-hosted wallets.
Some further measures, currently under discussion, could see unregulated crypto exchanges cut off from the conventional financial system altogether.
This amendment has not yet been ratified, as the bill must first be agreed upon by both the parliament and national ministers (the EU Council), who are in charge of passing bills into law.
On the Flipside
- Many members of the European People’s Party (EPP) stand opposed to the changes, calling it a “de facto ban of self-hosted wallets.”
Why You Should Care
The legislation send in motion by the EU parliament could stifle innovation in the crypto industry and invade the privacy of its users.