Key Takeaways
- European Commission proposes new crypto bill
- Bill set to tighten existing crypto laws
- Anonymous wallets banned under new regulations
According to the proposed bill, a new regulation called "the rule of travel" will be implemented to ensure that crypto payments are transparent and identifiable. This rule is currently used in global banking transfer systems and applied to crypto payments in the region.
The EC mentioned in a press release that the steps were necessary to ensure full monitoring of cryptocurrency transactions. It also noted that the regulation would limit financial crimes and terrorist financing activities in the region.
In addition, privacy crypto wallets will be banned within the region in a bid to enforce the bill and ensure a sane crypto payment environment. However, the European Parliament will have the final say on these recommendations. A process that could take up to 2 years before these proposals finally become law.
The European Commission also revealed how activities would occur in practice. According to the document, the European Commission has proposed to require companies that facilitate cryptocurrency transfers to collect various personal data from issuers and recipients.
Companies that process cryptocurrency transactions will need to register the name, address, date of birth, wallet reference and recipient's name.
These additional information obligations would affect when a transfer exceeds 1000 euros or when a series of payments appears to be linked and the total exceeds 1000 euros. The Commission said: "These proposals will help the cryptocurrency industry to grow, as it will benefit from an updated and harmonized legal framework across the European Union."
This is a rather surprising conclusion when we know that companies are leaving Europe to escape the new regulations.
Do you think the new regulations is fair on the crypto industry?
