To combat money laundering and terrorist funding, the EU has called for an outright ban on anonymous cryptocurrency transactions. This package, which was released on Tuesday, includes four pieces of legislation. Other cryptocurrencies and all crypto-asset services are covered under the proposals.
The European Union is preparing to restrict anonymous cryptocurrency transactions, protecting people and the financial system by making it harder for illicit transactions and terrorist funding to take place.
The EU’s executive arm, the European Commission, had issued four legislative proposals on Tuesday, including a bundle of four measures.
#Cryptocurrency is one of the newest ways to launder money.
Our rules will now apply to the whole of the crypto sector. We will ban anonymous crypto wallets and make sure that crypto-asset transfers are traceable.
— Mairead McGuinness (@McGuinnessEU) July 20, 2021
Proposals include the development of a new EU agency tasked with ensuring terrorist funding and money laundering monitoring and implementation of a uniform EU limit of €10,000 ($11,800) on big cash transactions. The legislation includes the need that senders of crypto asset provide their name, address, date of birth, and account number of birth, and that recipients of the crypto asset provide their name, address, date of birth, and account number of birth.
Every digital currency and every crypto-asset service would be subject to the proposed regulations. The European Parliament wants to have the legislation functioning by 2024.
Recent Fears of Crypto Ransomware
Some high-profile hacks have focused on cryptocurrencies, which have been sought after as ransom due to their use of anonymity or difficulty of tracing transactions.
This government has plans to raise the rewards for finding those who utilize cryptocurrency in illegal activities to $10 million.
A surge in cryptocurrency exchanges as criminal hotbeds has come along with the increase of institutions’ use of cryptocurrencies.
Anonymous and difficult to track money is able to be used in money laundering because of the decentralized structure of money. To avoid the same, rules have been established globally for combating money laundering. But on the other hand, AML rules have a reputation for being rigorous and inflexible.
Regulations imposed on exchanges impose additional reporting requirements for those who prevent trading and exchange from operating normally on their blockchains.
Bitcoin addresses that are not connected to the real world are first in line to be under the new Anti-Money Laundering (AML) regulations.