EU EU will make Bitcoin traceable and ban anonymous crypto wallets in anti-money laundering drive


Cryptocurrency exchanges could be forced to collect the details of people sending and receiving crypto under new rules proposed by the European Commission.

The EU's executive branch announced the potential change on Tuesday as part of a package of reforms aimed at tackling financial crime within the bloc.

"The aim of this package is to improve the detection of suspicious transactions and activities, and to close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system," the Commission said in a statement.

The new law would establish a new EU-wide anti-money laundering authority (AMLA) with oversight of cryptocurrencies by 2023.

How would this affect cryptocurrency trading?​

Some crypto-asset service providers are already covered by the EU's anti-money laundering and terrorism funding rules.

The proposed law would apply these rules to the entire crypto sector, forcing service providers like crypto exchanges to carry out due diligence on their users.

This would bring crypto-assets in line with bank transfers, applying what is known as the Travel Rule to crypto transactions to make them traceable.

In practice, this means that a service provider exchanging crypto on behalf of a customer would have to record their name, address, date of birth and account number, as well as the name of the intended recipient of the transfer.

Anonymous crypto-asset wallets would also be banned under the new law – just as anonymous bank accounts already are – in an effort to make transactions using Bitcoin and other cryptos fully traceable.

'A harmonised framework'​

"These proposals have been designed to find the right balance between addressing these threats and complying with international standards while not creating excessive regulatory burden on the industry," the European Commission said.

"These proposals will help the EU crypto-asset industry develop, as it will benefit from an updated, harmonised legal framework across the EU".

EU states and the European Parliament have the final say on the proposals, meaning it could take two years for them to become law.
 
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This would bring crypto-assets in line with bank transfers, applying what is known as the Travel Rule to crypto transactions to make them traceable.
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You know that shit you hate and sought to leave; don't worry citizen, we'll save you from yourself.
 
Rome's rightful successor said:
More power moves made by the ungodly EU in order to keep there population under control.


Why? because there low income population does not have a choice. This is to force there population to be monitered for signs of wrongthink.
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And what is to stop them from simply using an exchange in, say, russia?
 
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DNA_JACKED said:
And if the crypto exchange isnt in the EU the EU can suck a massive wang, right?

So why would any exchange run in europe?
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They would figure out how to fuck you over, like how it is hard for a US citizen to get a bank account in the EU because the oppressive restrictions. Could be the exchanges just refuse to serve the Eurocucks like euro banks deny americants.
 
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DNA_JACKED said:
And what is to stop them from simply using an exchange in, say, russia?
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the fact that it's explicitly illegal will deter all businesses and the vast majority of normies from doing it

like yeah in theory this doesnt matter because you don't even need an exchange at all, you can just send bitcoin directly from your wallet to another persons wallet, no middle man required. but it being outlawed (even if these laws are not enforced) is enough of a deterrent to push crypto back to where it was 6 years ago: used exclusively for black market internet shit
 
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Common Sense™ measures to thwart those who hate and attack our your guys freedom.
 
Typical Euro plan
1.) Think of something retarded
2.) Do it to the entire continent
3.) Ignore the fact that a world exists outside of Europe
4.) Wait for your adversaries to come to the negotiating table and accept your terms
5.) ????????
6.) Profit, no just kidding, fail and seethe about it for the next 100 years
See Napoleon, Hitler, et al.
 
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Rusty Crab said:
1) Bitcoin is already tracable. It was never, ever an "untracable currency".
2) This is how it already works in the US. (under the name Know Your Customer).

It's shit, but yeah I expected this to happen, as did most people in the know on this stuff.
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I remember a few years ago Americans got banned from a variety of crypto exchanges because of this stuff, making it more difficult to use your bitcoin to buy alts if you had interest in it. So this does look like the EU catching up to the US in trying to mess with crypto.
 
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It already is. To sell bitcoin at a bank, atm(for crypto) or a service that grants cash for bitcoin you need photo ID. And if you find someone that will give you cash for your bitcoin, the fees are almost as much as the tax burden. So why do it that way anymore.
 
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