Alexa EU parliament passes laws to ban anonymity in crypto transfers
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EU parliament passes laws to ban anonymity in crypto transfers


Blockchain

EU parliament passes laws to ban anonymity in crypto transfers

Lawmakers in the European Union voted today in favor of controversial measures to outlaw anonymous crypto transfers, a move the industry said would invade privacy and stifle innovation.

In the latest sign that lawmakers are tightening up on the freewheeling sector, the lawmakers were set to back tougher safeguards for transfers of bitcoin and other cryptocurrencies.

Two committees in the European parliament have scraped cross-party compromises to be voted on. The $2.1 trillion crypto industry is still subject to questionable regulation globally. Concerns that bitcoin and other cryptocurrencies could upset financial stability and be used for crime have accelerated work by policymakers to bring the industry to heel.

Over 90 policymakers in the European Parliament have voted in favor of the proposal. The proposals are projected to extend anti-money laundering (AML) requirements that apply to legacy payments of more than EUR 1,000 ($1,114) to the crypto sector. They also scrape the floor for crypto payments, so recipients and payers of even the most minor crypto transfers would require to be identified, including for transactions with self-hosted or unhosted wallets. Further measures could see unregulated crypto exchanges cut off from the legacy financial system.

The plans must be agreed on by both the national and parliament ministers, who meet as the EU council, to pass into law.


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