Today, lawmakers from the European Union cast votes on several controversial steps to illegalize anonymous crypto transfers, a move that – according to the industry –would eliminate privacy and hinder innovation. The inferences of the voting by the participants of the Economic and Civil Liberties Committees of the European Parliament will be promoted afterwards.
The proposals are focused on widening AML (anti-money laundering) requirements that are implemented on traditional payments of more than 1,000 euros (nearly $1,114) in terms of crypto. In addition to this, they have a stringent eye on crypto payments to guarantee that recipients and senders would require to provide their identification even for the minute crypto transfers through unhosted wallets.
Additional moves under debate could witness unregulated exchanges of cryptocurrency having cut off from the traditional system of finance.In December, governments stated that they intended to scrap a threshold of up to EUR 1,000 for crypto, depending on the fact that the limit can be conveniently circumvented by digital payments, and to incorporate crypto wallets that are not run on the behalf of regulated providers of crypto assets.
Participants of the centre-right EPP (European People’s Party)went against the controversial modifications, criticizing what they termed as a de facto prohibition over the self-hosted wallets. The economic spokesperson of EPP – Markus Ferber –mentioned in a statement (which was emailed on Thursday) that these proposals are not even proportionate or warranted. He added that due to the respective approach to regulating the latest technologies, the additionally open-minded jurisdiction would win over European Unions to another level.
A different legal proposal would attempt to block transactions performed by the non-compliant providers of crypto services, including those functioning within the jurisdiction of the EU without certification or having no affiliation to the jurisdiction. Prominent members of the crypto industry like Coinbase, along with the legal experts voiced against the voting conducted today, expressing that the strict privacy violation would experience legal complexities across the courts based in the EU.
As per the unique rules, the crypto exchange Coinbase will be required to report to the regulatory officials whenever a consumer would obtain more than EUR 1,000 in crypto out of a self-hosted wallet, as cautioned by Brian Armstrong (the CEO of the exchange) in a Twitter post on Wednesday. To be translated into law, the proposals need to have consent from both the national minister and the parliament.