The European Commission introduces a ban on anonymity for the crypto industry
The European Commission intends to introduce a total ban on anonymous cryptocurrency wallets by 2024. Earlier on the network there were already rumors about the imminent "suppression" of digital currencies by the European Union, and, apparently, they turned out to be true.
The main goal of the innovation on the part of EU politicians is to stop the massive flows of illegal funds that cybercriminals transfer in cryptocurrency equivalent.
To this end, they proposed to tighten the approach to crypto assets by collecting data on the senders and recipients of funds as part of transactions in bitcoins and any other digital currencies. The address, date of birth and other data may be requested as additional information.
In theory, this will help law enforcement agencies track the chains of illicit funds and attempt to launder them. On the other hand, remembering that even the American FBI has repeatedly mentioned the difficulty of tracking transactions in the crypto world, it is not yet entirely clear how the European Union plans to implement its plan.
Meanwhile, representatives of the European Commission argue that the amendments to the legislation will provide the possibility of “full traceability” of cryptocurrency transfers in bitcoins and timely fixation of gross violations, such as money laundering and terrorist financing.
The members of the European Commission also announced that all anonymous crypto wallets will be banned based on the EU AML/CFT rules, which now apply to the cryptocurrency sector. In fact, the agency intends to enforce the “travel rule” to the new asset class. It has long been part of the FATF's financial guidelines for traditional assets.
This set of rules for the crypto industry was designed to balance the challenge of addressing critical threats and adhering to established international standards, without the need to create a regulatory burden for the entire industry. This is how the innovations were described in the official document. It also states that all these proposals will bring exceptional benefits and harmony to the industry as a result of the renewal of the EU legal framework.
We think that you have already guessed exactly how the crypto community reacted to the boundless optimism of politicians. In short, its representatives have yet another reason to “love” the regulators.