Cryptocurrency transactions made in the European Union may soon be subject to tighter regulatory oversight, as the bloc’s policy makers propose a sweeping new set of rules targeted at mitigating dirty money.
According to Reuters, the European Commission has proposed to outlaw cryptocurrency transactions that are anonymous, in an effort to crackdown on terrorism financing and money laundering. The latest package of proposals, published on Tuesday, would make virtual currency transactions traceable, ban cash transactions in excess of $11,800, as well as create a new EU watchdog committee consisting of approximately 250 staff members that would overlook risky banking institutions.
If passed, the new regulations would require institutions that transfer crypto-assets such as bitcoin on behalf of customers to record the customer’s account number, name, address, and date of birth, as well as the recipient’s personal information. Institutions will also be barred from issuing anonymous digital currency wallets, similar to the ban that is already in place under the EU’s anti-money laundering regulations targeting anonymous bank accounts.
“We shouldn’t have different rules for the financial system. They should apply across digital currencies as well,” explained EU financial services commissioner Mairead McGuinness at a news conference. The latest package still needs to gain approval from the European Council and the European Parliament, which take until 2024 before the anti-money laundering body becomes fully operational.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.